The Associated Press reports that Hasbro Inc. has now dropped the lawsuit it launched earlier this year against Rajat and Jayant Agarwalla, the creators of Scrabulous, a Scrabble clone that found a sizable following on Facebook. We previously discussed Scrabulous' return to Facebook under a different name, as well as the "official" Scrabble client, which was not exactly well received. Hasbro's IP rights to the game are limited to North America, and the AP story adds: "Mattel, which owns the rights to Scrabble outside of North America, filed a lawsuit against the brothers in India claiming violations of intellectual property. It was not immediately clear what the status of that lawsuit is."