The Collaborative International Dictionary of English v.0.48:

Novelize \Nov"el*ize\, v. i.
   To innovate. [Obs.]
   [1913 Webster]

The Collaborative International Dictionary of English v.0.48:

Novelize \Nov"el*ize\, v. t. [imp. & p. p. Novelized; p. pr. &
   vb. n. Novelizing.]
   1. To innovate. [Obs.]
      [1913 Webster]

   2. To put into the form of novels; to represent by fiction;
      to fictionalize. "To novelize history." --Sir J. Herschel.
      [1913 Webster]

WordNet (r) 3.0 (2006):

novelize
    v 1: convert into the form or the style of a novel; "The author
         novelized the historical event" [syn: novelize,
         novelise, fictionalize, fictionalise]