The original lexicon wasn't just direct quotations, but it certainly was pretty much entirely paraphrases and extrapolations from the book with quotation as support...as a lexicon should be. I understand why fandom doesn't like one of its own selling a fandom product, and I presume JKR is unhappy because she thinks this lexicon will get in the way of the sales of her encyclopedia, when it's finished. This is patently ridiculous, because presumably she would add all kinds of new information to hers and not just comb through her previous work to put the details in one place. I understand if they want to work with the publisher to ensure that the cover makes it clear that this is not an endorsed publication, but...bringing a weeping JKR into the court case and saying that Steve did shitty work is...ugly.