Palworld Dev Forced to Patch Game Amid Nintendo, Pokémon Lawsuit

Palworld, developed by Pocketpair, has been embroiled in a high-profile legal battle with Nintendo and The Pokémon Company since its launch in early 2024. The game, which debuted on Steam at $30 and joined Xbox and PC Game Pass simultaneously, shattered sales and concurrent player records. Despite its massive financial success, Pocketpair CEO Takuro Mizobe admitted the company struggled to manage the influx of revenue. In response, Pocketpair quickly formed a partnership with Sony to establish Palworld Entertainment, a new entity focused on expanding the game’s intellectual property. The collaboration also facilitated the game's release on PS5.

Following Palworld’s explosive debut, comparisons emerged between its creatures, known as Pals, and Pokémon. Accusations of design similarities led Nintendo and The Pokémon Company to pursue a patent infringement lawsuit rather than a copyright claim. They are seeking 5 million yen ($32,846) each in damages, along with late payment penalties and an injunction to halt Palworld’s release.

In November 2024, Pocketpair confirmed it was facing legal action over three Japan-based patents related to catching virtual creatures in a field. Palworld features a mechanic involving the use of a Pal Sphere to capture monsters in open areas—a feature reminiscent of Pokémon Legends: Arceus.

Subsequent updates revealed that changes introduced in Patch v0.3.11 were directly tied to the lawsuit. Released in November, this patch eliminated the ability to summon Pals via Pal Spheres, replacing it with a static summon mechanism near the player. Additional gameplay tweaks were also implemented. Pocketpair acknowledged these modifications were necessary to mitigate potential disruptions to Palworld’s development and distribution.

More recently, Patch v0.5.5 brought further alterations, shifting gliding mechanics away from Pals to rely on a dedicated glider item. While Pals will retain passive buffs for gliding, players will now require a glider in their inventory to perform this action. These adjustments were described by Pocketpair as “compromises” necessitated by the ongoing legal threat.

“Unfortunately, these changes were unavoidable to ensure the continued development and availability of Palworld,” stated Pocketpair in an official announcement. “We deeply regret any inconvenience caused to our community and hope our supporters understand the necessity of these steps.”

Despite these concessions, Pocketpair remains steadfast in disputing the validity of the patents in question. The company expressed gratitude for fan support during this challenging period, emphasizing its commitment to delivering innovative content to its audience.

During a discussion at GDC, John “Bucky” Buckley, Pocketpair’s communications director, shed light on various challenges faced by the studio, including false accusations surrounding generative AI usage and unauthorized Pokémon model claims. Buckley noted that the patent lawsuit came as a surprise, highlighting the unpredictability of such legal disputes.