Palworld Dev Forced to Patch Game Amid Nintendo and Pokémon Lawsuit

Palworld developer Pocketpair has recently disclosed that changes made to the game via patches were necessitated by an ongoing patent lawsuit filed by Nintendo and The Pokémon Company. Launched in early 2024, Palworld hit the market with a $30 price tag on Steam and was immediately available on Xbox and PC through Game Pass, shattering sales records and player concurrency numbers. The game's massive success led to unexpected challenges for Pocketpair, as stated by CEO Takuro Mizobe, who mentioned that the studio was overwhelmed by the profits. In response to the game's popularity, Pocketpair quickly moved to expand its reach, striking a deal with Sony to establish Palworld Entertainment, aimed at broadening the game's intellectual property. This strategic move culminated in a PS5 release.

Following its explosive launch, Palworld faced scrutiny over similarities between its Pals and Pokémon, prompting accusations of design plagiarism. Instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company opted for a patent infringement approach, seeking 5 million yen (approximately $32,846) each, plus late payment damages, and an injunction to halt Palworld's distribution.

In November, Pocketpair acknowledged three patents related to the capture of Pokémon in a virtual environment, which are central to the lawsuit. Palworld features a similar mechanic where players throw Pal Spheres to capture creatures in the wild, akin to the gameplay in the 2022 Nintendo Switch title Pokémon Legends: Arceus.

Six months later, Pocketpair confirmed that the changes implemented in Patch v0.3.11, released in November 2024, were indeed a response to the legal pressures. This update eliminated the ability to summon Pals using thrown Pal Spheres, replacing it with a static summon near the player. Additional mechanics were also modified. Pocketpair stated that failure to implement these changes would have further degraded the gameplay experience.

Moreover, with the rollout of Patch v0.5.5, further adjustments were made to comply with legal demands. Gliding, previously facilitated by Pals, now requires a glider from the player's inventory, though Pals still offer passive gliding buffs. Pocketpair described these alterations as "compromises" made to avoid an injunction that could disrupt the game's development and sales.

Despite these modifications, Pocketpair remains committed to challenging the lawsuit, focusing on proving the patents' invalidity. In a comprehensive statement, the studio expressed gratitude for fan support and apologized for the limited transparency during the litigation. They reiterated their dedication to Palworld's development and future content.

At the Game Developers Conference (GDC) in March, IGN interviewed John “Bucky” Buckley, Pocketpair's communications director and publishing manager. Following his presentation titled 'Community Management Summit: A Palworld Roller Coaster: Surviving the Drop,' Buckley discussed the studio's challenges, including accusations of using generative AI and stealing Pokémon models for Pals, which have been debunked. He also touched on the unexpected nature of Nintendo's patent lawsuit against Pocketpair.