Last november I had pondered on the issue as to why Scrabble was not going after Scrabulous. Well, now they have. The possible claims are copyright and trademark infringement. Though fair use if a defense to copyright infringement, Scrabulous might fare well only if it's product is "transformative" (See Kelly v Ariba). Trademark infringement is an obvious option given the similarities that exist between the two names.
For an excellent articulation of the legal issues, visit The Legality .
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