Why does every one think that!!!!
Tolkien didn't creat Hobbits or Orcs or Goblins or Elves....they are much older than that. In most cultures: norse, celts, germanic peoples and others, there have always been these races, these story based beings woven into their culture. There names and descriptions differ some, but they are mainly the same. You can't copywrite them, they are Fantasy..just like you can't copywrite Vampire Or Werewolf.
Like Tolkien doesn't own ELROND, as in the name; but, if someone created an elf charcter in a story, who, in a sense was Elrondish, and by that I mean was the king, or leader of a group of elves was wise and all knowing, had a daughter (I mean almost using this character in the way that Mr. Tolkien did) then there might be a prob.