I first heard about Hasbro’s tight grip over IP surrounding the Scrabble board game about a year ago, when they sent Instructables a nastygram over this Instructable:

Well, they’re in the news once again as they’re now going after the immensely popular Scrabulous application on Facebook (the text of that nastygram is here.) I am not a lawyer, but it seems to me that Hasbro has decent legal protection around Scrabble, including copyright and trademark, though its patent on part of the game board expired in 1970, which weakens its position somewhat. A fairly thorough treatment of Hasbro’s claims over Scrabble can be found here.
Many, many people (including me) are sad to see this happen. There’s even a Facebook Group now, where Scrabulous users are coordinating letter-writing campaigns to Hasbro. If it’s any reassurance, though, I think it’s possible that Scrabulous will be able to work out a deal with Hasbro. For Hasbro, the lawsuit may simply be negotiating leverage; if the law is on their side, then they’ll be able to take over Scrabulous and all of its users for a pittance.
So, we may have Scrabulous (or a similarly-branded app) for the years to come. It’s mostly sad for the developers of Scrabulous, who have put a lot of sweat into making it great (which, as a little web application, it really is great.) They’ve taken in some advertising revenue, but they’re likely to get raped in this deal. I do wonder on the other hand if some of their online innovations (keeping a particular letter selected on a blank tile, Facebook-specific features around inviting friends to play/chatting, etc.) could be protected. Can innovations in a derivative, infringing work still be copyrighted or patented? I hope those guys have some leverage…
In this case of the Scrabble Instructable (it was a way to print out a compact, travel-sized Scrabble game on a single sheet of paper), the author voluntarily removed the Instructable to avoid any trouble, so Hasbro’s claims weren’t tested.