Social news site Digg was just “having a little fun” when they decided to put Mario in many of their Diggbar links.
Nintendo disagreed and sent a cease and desist letter to Digg asking them to remove their trademarked character from use on their site.

The letter below, leaked to us by a trusted source, indicates that Nintendo is concerned about “the marketing or sale of your products & services.” Other than generating traffic for the purpose of increase advertising revenue and the sale of Digg “swag”, Digg does not actually sell a product.

This story is developing. We will update as more information is made available
Read more on this social media blog.