Hasbro (HAS) Would Be Nuts Not To Fight “Scrabulous”

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By Douglas A. McIntyre Updated Published
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HasbroHasbro Inc. (HAS) is getting quite a bit of flack from every corner of the Internet for waging a legal battle against the popular Facebook knock-off of Scrabble called "Scrabulous." Much of the criticism is dead wrong.

Brothers Rajat Agarwalla and Jayant Agarwalla took something that did not belong to them, the intellectual property of the popular word game. The fact that it’s popular is irrelevant. If the Agarawalla brothers were able to get away with Scrabulous, than there would be nothing to stop people from stealing any content they wanted. I know people do that anyway but that does not make it right.

What do the fans of Scrabulous expect Hasbro to do – just sit there and watch a pirated version of one of their most popular products takes off? Should the toy company pay the brothers a fee for coming up with the game? That would be like hiring a burglar to protect you against being robbed no?

Hasbro, like any sane company, needs to protect its intellectual property. Shareholders would roast management alive if they did nothing about Scrabulous. Maybe some sort of compromise can be worked out with the Agarawallas, particularly if Scrabulous is as great as the media reports say it is.

The bulk of the profits for the games, though, should belong to Hasbro. People should not be rewarded for illegal conduct.

Jonathan Berr

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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