Literature (from Latin litterae (plural); letter) is the art of written works, and is not bound to published sources

(although, under circumstances unpublished sources can be exempt). The word literature literally means "acquaintance with letters" and the pars pro toto term "letters" is sometimes used to signify "literature," as in thefigures of speech "arts and letters" and "man of letters." The two major classifications of literature are poetry and prose. "Literature" is differentiated from popular and ephemeral classes of writing. Terms such as "literary fiction" and "literary merit" are used to distinguish individual works as art-literature rather than vernacular writing, and some critics exclude works from being "literary", for example, on grounds of weak or faulty style, use of slang, poor characterization and shallow or contrived construction. Others exclude all genres such as romance, crime and mystery, science fiction, horror and fantasy. Pop lyrics, which are not technically a written medium at all, have also been drawn into this controversy. -Jimmy Wales (Wikipedia)

Literature is a term used to describe written or spoken material. Broadly speaking, "literature" is used to describe anything from creative writing to more technical or scientific works, but the term is most commonly used to refer to works of the creative imagination, including works of poetry, drama, fiction, and nonfiction. Why do we read literature? Literature represents a language or a people: culture and tradition. But, literature is more important than just a historical or cultural artifact. Literature introduces us to new worlds of experience. We learn about books and literature; we enjoy the comedies and the tragedies of poems, stories, and plays; and we may even grow and evolve through our literary journey with books. Ultimately, we may discover meaning in literature by looking at what the author says and how he/she says it. We may interpret the author's message. In academic circles, this decoding of the text is often carried out through the use of literary theory, using a mythological, sociological, psychological, historical, or other approach. -Esther Lombardi (about.com)

The body of written works of a language, period, or culture. Imaginative or creative writing, especially of recognized artistic value: "Literature must be an analysis of experience and a synthesis of the findings into a unity" (Rebecca West). The art or occupation of a literary writer. The body of written work produced by scholars or researchers in a given field: medical literature. Printed material: collected all the available literature on the subject. Music. All the compositions of a certain kind or for a specific instrument or ensemble: the symphonic literature.
-Rebecca West (answers.com)