Palworld Dev Pocketpair Forced to Patch Game Amid Nintendo, Pokémon Lawsuit

Palworld developer Pocketpair recently announced that changes made to the game in recent patches were necessitated by an ongoing patent lawsuit filed by Nintendo and The Pokémon Company. Launched in early 2024 on Steam for $30 and included in Game Pass on Xbox and PC, Palworld quickly shattered sales and concurrent player records. The game's success led to significant profits, which, according to Pocketpair boss Takuro Mizobe, were overwhelming for the developer to manage. Capitalizing on this success, Pocketpair formed a new business venture with Sony called Palworld Entertainment, aimed at expanding the IP, and later released the game on PS5.

Following Palworld's launch, the game drew comparisons to Pokémon, with some accusing Pocketpair of copying Pokémon designs. However, rather than pursuing a copyright infringement case, 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 confirmed that the lawsuit revolved around three Japan-based patents related to capturing Pokémon in a virtual field, a mechanic similar to Palworld's use of Pal Spheres to capture monsters.

Six months later, Pocketpair admitted that changes in Patch v0.3.11, released in November 2024, were indeed a result of the legal action. This patch altered the summoning mechanic from throwing Pal Spheres to a static summon next to the player and modified several other game mechanics. Pocketpair stated that these adjustments were necessary to avoid further deterioration of the gameplay experience. Additionally, Patch v0.5.5 introduced further changes, shifting gliding from using Pals to requiring a glider in the player's inventory, though Pals still provide passive gliding buffs.

Pocketpair described these modifications as "compromises" forced upon them by the threat of an injunction that could halt the development and sale of Palworld. The developer expressed regret over these changes but emphasized their necessity to prevent disruptions. Despite making these adjustments, Pocketpair remains committed to challenging the lawsuit and asserting the invalidity of the patents in question.

In a full statement, Pocketpair conveyed their gratitude to fans for their support during these challenging times and apologized for the limited information they could share due to the ongoing litigation. They reaffirmed their dedication to developing Palworld and delivering new content to their fans.

At the Game Developers Conference (GDC) in March, IGN interviewed John “Bucky” Buckley, communications director and publishing manager for Pocketpair. During his talk, 'Community Management Summit: A Palworld Roller Coaster: Surviving the Drop,' Buckley discussed various challenges faced by Palworld, including accusations of using generative AI and stealing Pokémon models, both of which have been debunked. He also mentioned that the patent infringement lawsuit from Nintendo came as a "shock" to the studio and was unforeseen.