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Real Person Fic, although not copyright infringement, can probably be potentially libellous I would think...
Quite honestly, RPF tends to squick me, personally, so I stay well away from it; on the other hand, it's not like it's a particularly new tradition - historical fiction writers in particular have been writing real person fic for a very long time, incorporating real historical people into their fictional tales, and most certainly not always sticking to just historically known facts about them.
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