The early-year success of Palworld has long since waned. The hype surrounding the video game has subsided, and player numbers are far from setting new records. Just as the developer Pocketpair was about to launch the game on the PS5, a long-anticipated lawsuit from Nintendo and The Pokémon Company arrived. Time to take a closer look at the legal dispute.
What is Palworld?
Earlier this year, we reported on the then-trending video game Palworld and its similarities to the well-known Pokémon franchise. In both games, players capture mythical creatures roaming the game world and then pit them against each other in battles. However, Palworld adds two unique aspects to this formula. On the one hand, the creatures, referred to as “Pals” in the game, assist players in performing various tasks, such as gathering resources or serving as mounts. On the other hand, Palworld includes melee and ranged weapons, a feature entirely absent in Pokémon.
Despite the similarities between the two games, Nintendo had refrained from filing a lawsuit—until now.
Three Patents – One Issue
On 19 September 2024, Nintendo announced in a press release that, together with The Pokémon Company, it had initiated a patent infringement lawsuit against Palworld developer Pocketpair before a court in Tokyo. According to the developer, the case concerns three software patents intended to protect specific mechanics in the Pokémon games.
Patent No. 7545191 and Patent No. 7493117 – The Pokéball
In the Pokémon series, players catch creatures or deploy them by throwing a Pokéball. This mechanic is a core element of the franchise and is accordingly patented by Nintendo. Palworld allegedly infringed on this patent, as players use similar “Pal Spheres” to capture roaming creatures in the game.
Patent No. 7528390 – The Flying Start
Large game worlds demand swift traversal options. In Palworld, this includes flying Pals that players can ride. For particularly rapid movement—such as when a player is already airborne from jumping—these Pals can be summoned at the press of a button, allowing a “flying start.” Nintendo has also patented this mechanic.
The World of Divisional Patents
A closer look at the patents reveals that all of them were filed after Palworld’s release on 19 January 2024. However, this does not mean that older games can be easily targeted by newer patents.
Instead, these patents are so-called “divisional patents” based on an earlier priority application from 2021. This is grounded in Art. 4G of the Paris Convention, which is also applicable in Japan. If a patent application includes multiple inventions, the applicant is allowed to split the application, with the priority date of the original application remaining intact.
Interestingly, the original application from December 2021 seems to have been a reaction to Palworld. The game was first announced in June 2021, following Pocketpair’s earlier success with Craftopia, which was widely regarded as a copy of Nintendo’s Zelda franchise.
According to Pocketpair’s press release, the company is still assessing its legal position, including whether it will challenge the patents in question or potentially seek a settlement with Nintendo. The outcome remains to be seen.
What is Nintendo’s goal?
A settlement, however, requires Nintendo’s consent. According to Pocketpair, Nintendo is demanding damages of 10 million yen, roughly €60,000, for itself and The Pokémon Company. Clearly, the billion-dollar corporation is not primarily motivated by monetary compensation but rather by the requested court order to cease the alleged infringements. In other words, Palworld would have to forego its signature capture mechanic and certain traversal methods. Such changes would significantly impact the game. A settlement satisfying Nintendo’s interests without forcing Pocketpair to make substantial modifications to Palworld seems unlikely.