I'm writing a novel based on people I know, but I'm changing everyone's name. Can I still be sued for libel if it's published?
The short answer is "yes." Simply stated, libel is a written or recorded statement (as opposed to an oral statement, which is slander) that harms the reputation of a living, identifiable person through a false statement of fact. The key elements are that the subject's reputation is harmed, that the subject is identifiable, and that he or she was harmed by a "fact," not an opinion. Both slander and libel are "defamation" under U.S. law, although individual state laws vary in the defenses and remedies available to those who have been defamed.
However, simply changing the names in a fictional work may not be enough to protect you from a lawsuit. "This is actually one of the most complex questions in libel law," says Illinois lawyer Charlie Petit, who practices publishing law, representing the author's side. "It breaks down into two issues: Is there enough information to identify a subject, and is the identifiable subject a public figure?"
You can even libel someone unintentionally. "For example, let's assume a novel posits that a senior official of an existing major league baseball team raped and murdered two players' wives. The writer believes that she is just making this up, and really didn't have anyone in mind," says Petit. "If, however, some official of that team, or perhaps even of another professional sports franchise, could be mistaken for that character by someone who knew the real person, there is an 'identifiable subject.' As you might imagine, this creates big headaches for writers of 'legal thrillers'!"
According to the law, an author always needs to take "reasonable care" that the statements he or she is making are not false. The amount of care that is considered "reasonable" is a lot less for a true public figure than for a private individual, but authors must always make some effort to confirm their statements, says Petit. While you can't publish statements that you know, or reasonably should know, are false, the courts have held that being subject to these kinds of opinions, speculations and even jokes is a hazard of being in the public eye.
In other words, you're less likely to have a legal problem if you write in your novel about a senator, based on a real person, who is cheating on her taxes than if you write the same thing about someone resembling your boss.
However, when you're writing fiction, changing someone's name is not enough if the person is still clearly identifiable. If you publish a short story lambasting a character, resembling your sister-in-law, who steals from her employer, you may be in trouble. Your smartest strategy is to change all identifying characteristics or blend personality and physical traits from a variety of different people to create new, completely fictional creations. By doing so, you—and your lawyer—will have much less to worry about.