Palworld Dev Forced to Patch Game Amid Nintendo, Pokémon Lawsuit

Palworld developer Pocketpair has revealed that recent updates to the game were necessitated by an ongoing patent lawsuit filed by Nintendo and The Pokémon Company. Launched early in 2024, Palworld quickly became a sensation, debuting on Steam for $30 and simultaneously on Xbox and PC via Game Pass. The game shattered sales records and achieved unprecedented concurrent player numbers. Takuro Mizobe, the head of Pocketpair, admitted the company was overwhelmed by the game's financial success. Capitalizing on this, Pocketpair swiftly signed a deal with Sony to create Palworld Entertainment, aimed at expanding the IP, and later released the game on PS5.

The game's launch drew comparisons to Pokémon, with some alleging that Palworld's creatures, known as Pals, were too similar to Pokémon. However, instead of pursuing a copyright infringement case, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking damages of 5 million yen each (around $32,846) and an injunction to halt Palworld's distribution.

In November, Pocketpair acknowledged three patents they are being sued over, which relate to the mechanic of capturing creatures in a virtual field. Palworld features a similar mechanic using a device called a Pal Sphere. In response to the lawsuit, Pocketpair released Patch v0.3.11 in November 2024, which altered the game's mechanics. The patch eliminated the ability to summon Pals by throwing Pal Spheres, replacing it with a static summon beside the player. This change, along with others, was a direct result of the legal action.

Pocketpair stated that without these modifications, "the alternative would have led to an even greater deterioration of the gameplay experience for players." They have also introduced Patch v0.5.5, which further adjusts gameplay by requiring players to use a glider for gliding instead of Pals. Although Pals can still provide passive gliding buffs, players must now carry a glider in their inventory.

Pocketpair described these changes as "compromises" forced upon them to avoid an injunction that could stop Palworld's development and sales. They expressed disappointment over the necessity of these changes but emphasized their importance in maintaining the game's progress. Despite these adjustments, Pocketpair continues to challenge the validity of the patents in the lawsuit.

In a full statement, Pocketpair expressed gratitude for their fans' support and apologized for the limited information they could share due to the ongoing litigation. They reiterated their commitment to developing Palworld and delivering new content, while also acknowledging the frustration and concern caused by the legal battle.

At the Game Developers Conference (GDC) in March, IGN interviewed John "Bucky" Buckley, Pocketpair's communications director and publishing manager. Buckley had previously discussed Palworld's challenges at the 'Community Management Summit: A Palworld Roller Coaster: Surviving the Drop,' addressing accusations of using generative AI and copying Pokémon models, both of which have been refuted. He also mentioned the unexpected nature of Nintendo's patent lawsuit, describing it as a "shock" to the studio.