Palworld Dev Forced to Patch Game Amid Nintendo, Pokémon Lawsuit

Palworld developer Pocketpair recently disclosed that changes implemented in the game were necessitated by an ongoing patent lawsuit filed by Nintendo and The Pokémon Company. Launched in early 2024, Palworld quickly became a sensation, debuting on Steam for $30 and simultaneously on Xbox and PC via Game Pass. The game's explosive launch overwhelmed Pocketpair, with CEO Takuro Mizobe admitting the studio struggled to manage the massive profits. Capitalizing on its success, Pocketpair swiftly partnered with Sony to establish Palworld Entertainment, aimed at expanding the IP, and eventually released the game on PS5.

The game's success drew inevitable comparisons to Pokémon, with some accusing Pocketpair of copying Pokémon designs. However, instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking 5 million yen (approximately $32,846) each, plus late payment damages and an injunction to block Palworld's release.

In November, Pocketpair acknowledged the lawsuit centered around three Japan-based patents related to capturing Pokémon in a virtual field. Palworld features a similar mechanic where players use a Pal Sphere to capture monsters, akin to the method used in the 2022 Nintendo Switch game, Pokémon Legends: Arceus.

Six months later, Pocketpair confirmed that the changes introduced in Patch v0.3.11, released in November 2024, were indeed a response to the legal action. This patch altered the Pal summoning mechanic from throwing Pal Spheres to a static summon beside the player, alongside other modifications. Pocketpair explained that these changes were essential to avoid further degrading the gameplay experience for players.

Further adjustments came with Patch v0.5.5, which shifted the gliding mechanic from using Pals to employing a glider, although Pals still offer passive gliding buffs. Players must now carry a glider in their inventory to glide. Pocketpair described these changes as necessary "compromises" to avert potential injunctions that could halt Palworld's development and sales.

Despite these modifications, Pocketpair remains committed to challenging the lawsuit's claims, particularly focusing on the patents' invalidity. In a comprehensive statement, the studio expressed gratitude for its fans' support and apologized for the limited information shared due to the ongoing legal proceedings. They reiterated their dedication to continuing Palworld's development and delivering new content.

At the Game Developers Conference (GDC) in March, IGN interviewed John "Bucky" Buckley, Pocketpair's communications director and publishing manager. Buckley discussed the challenges faced by Palworld, including accusations of using generative AI and copying Pokémon models, which have been debunked. He also touched on the unexpected nature of Nintendo's patent lawsuit, describing it as a "shock" to the studio.