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The name 'Liv' is in common currency. In a title like the one you just mentioned, 'Live' is spelt with a capital letter. In the title you suggest the article would read:
"Zendikar (codenamed Liv) is a Magic: The Gathering expansion set, set to be released on October 2, 2009."
Tell me again, why 'Liv' in that context couldn't refer to a female character called 'Liv'?
In what way have I demonstrated that I don't know how to spell proper nouns? Because I used a nick-name? They are commonly used in fiction, so why not gaming? You offered an example of how spelling reform might disambiguate but in fact it offers alternative areas of confusion. It's no more a stretch than your original example.
For all I know the character's in-game name might be Liv Tyler. *smiles* unlikely yes. But there's no reason why a character wouldn't be called Liv. Any more than there's a reason there wouldn't be a 'Liz' or a 'Bob' or a 'Chuck'.
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