It’s not a new concept, and it applies to the difference between a painter copying a Van Gogh (acceptable) and trying to pass that work off as the genuine article (illegal). In short, it’s the line between creative expression and forgery.

As others have pointed out, "making something look legit when it isn't" is a good description of fraud, and films have long had disclaimers in the credits that they are fictional.

Or, you have to at least put a disclaimer on it if it's likely to cause confusion. This isn't new.

> All Characters and events in this show -- even those based on real people -- are entirely fictional. All celebrity voices are impersonated... poorly. The following ...