Oh I do know this, very well. I first read the books in 1993, and was well aware of her War on Fanfic at that time. She did manage to wipe out tons of it with Cease & Desist letters. The rest of it went underground. It still exists, but in more protected places. 

So I don’t want to go into a discussion about fanfic, especially whether it should be allowed or not, bc it’s too big a topic… but I am personally supportive of it, I love to read it, I think fanfic is harmless to the canon of an author’s work, it’s even helpful at times, in offering a different perspective on the characters, fills in the interstices of the canon, so many good things. 

Here’s more on the types of fanfic, since I just posted it: http://i-want-my-iwtv.tumblr.com/post/73169740623/wheres-that-damn-types-of-fanfic-graph

Anne Rice’s actual quote re: fanfic is below the cut, because it makes me sad.

“I do not allow fan fiction. The characters are copyrighted. It upsets me terribly to even think about fan fiction with my characters. I advise my readers to write your own original stories with your own characters. It is absolutely essential that you respect my wishes.”

– Anne Rice, from her website.