[Kylotan]

Names themselves cannot be copyrighted but if they are especially popular then they may be trademarked.

Names that are taken from a book and then used vaguely in the same context as that book could be considered a derivative work and as such could be subject to copyright. I have heard of one or two muds asked to remove copyrighted material in the past but it was a long time ago. I think mostly it was because they went and asked permission and found it was denied.