Using real names andorganisations in stories

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I'm seeking other writers' opinions on this topic. In my current story, and the previous one which both involve a fictional character Harriet who is making a name for herself on the British stage, I have added some characters who just might be based on real people but with names changed. Recently, Harriet obtained a role in one of the most famous companies in England who are based in Stratford, the home of Shakespeare. Maybe I am over-reacting, but after using their real name in a few chapters, I've decided to be cautious and changed it to the Imperial Shakespeare Company.

What do other writers feel about the use of real people interacting with fictional ones, and fictional characters working for real organisations? I've read books where real people are mixed in with the fictional, but they were all historical novels and the people concerned are long dead and not able to sue, which makes a difference.

I'd really like to know what other people think.

Bronwen

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