Scrabulous Scrapped on Facebook

"We've been working with Mattel for a couple of months," RealNetworks spokesman Ryan Luckin said in April. "We do have a similar deal with Hasbro with online rights for Scrabble, so we'll continue to work with them as one of our partners."

Luckin said that RealNetworks is still in talks with the Agarwalla brothers; he declined to reveal details of those discussions.

"At the end of the day no matter what game is out there with a Scrabble trademark on it, it has to be approved by Mattel and Hasbro," he said. "So no matter what happens we want to work with them ... and also make this work for the Scrabulous guys as well."

Future Trouble for Facebook?

The situation calls into question a host of potential legal landmines for Facebook, which allows programmers to develop and upload all sorts of applications to the social networking site.

"The big issue here is what this implies for Facebook," said Tom Hemnes, a Boston-based attorney who specializes in copyright and trademark law. "If I were betting on this, if the case came to litigation or settlement, [I would bet] that Facebook would lose. They are indirectly associated with the name Scrabble to attract viewers to their site, and that would be trademark infringement."

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