The maker of Scrabble sued Jayant and Rajat Agarwalla, brothers from Calcutta, India, this summer. The brothers developed the unauthorized version, called Scrabulous, after they couldn't find an online version they liked.
The game was highly popular on Facebook and became one of the online networking site's most popular activities until it was removed this summer.
The court documents don't specify a reason for the withdrawal of the case.
Hasbro and the Agarwalla brothers did not immediately return messages left seeking comment.