Truly, not. It's illegal even if we are not going to have any profit with the mod. But, in rigour, using names like Middle-Earth, Gandalf and such is also illegal. I discussed this with other Middle-Earth related modders for many games, they consulted lawyers and some even contacted the authorities (if I remember well, it was Saul Zaents Company), and truly all images, names and musics of the books and the movies are copyrighted, so we theorically would need to change everything a little. Also, putting excerpts from the books, using images from the movies and drawings by various artists (we found them on the Internet, and sometimes we don't even know the artists), using music from the movies, and everything is not legal. But, as far as we don't get any money with it, I don't think we are doing anything wrong, and they probably won't care about it. It's not like we are putting the whole soundtrack for download and speaking on the TV about it.