Nintendo and The Pokémon Company have filed a patent infringement lawsuit against Pocketpair Inc., the Tokyo-based game developer behind Palworld, a survival adventure game. The lawsuit was filed with the Tokyo District Court on September 18, 2024, and seeks both an injunction and compensation for damages, alleging that Palworld infringes multiple patent rights owned by the plaintiffs.

What is Palworld?

Palworld, which launched in January 2024, quickly gained popularity with its unique mix of gameplay elements. Described by some as "Pokémon with guns", the game had attracted over 25 million players in just a month. The game allows players to capture, train, and battle with creatures known as "pals", while also incorporating the use of firearms, which adds a twist to the traditional creature-collecting genre. It's available on PC via Steam and on Xbox through Game Pass.

Despite the comparisons to Pokémon, Pocketpair has always insisted that Palworld is more of a survival crafting game similar to Ark: Survival Evolved or Valheim, where managing resources, exploring, and battling are integral parts of the experience.

Why is Pokémon important?

Pokémon is one of the most valuable and beloved franchises in gaming history, spanning multiple generations of fans and currently rated as the highest-grossing media franchise in the world. Owned by Nintendo, Game Freak, and Creatures, over 440 million Pokémon video games have been sold since the brand's inception in 1996, along with trading cards, animated series, and movies. The games focus on capturing, training, and battling creatures known as 'Pokémon', a concept that *Palworld* seems to mirror closely, but with the added twist of firearms.

Nintendo and The Pokémon Company have fiercely protected their intellectual property (IP) over the years, making this lawsuit no surprise. They have taken legal action in the past to protect the Pokémon brand, which is a cornerstone of their portfolio. The companies argue that the similarities between Palworld and Pokémon cross into infringement territory, prompting the need for legal action.

Why is Nintendo suing Palworld Now?

Since the release of Palworld, fans and critics alike have pointed out the game's resemblance to Pokémon, with many dubbing it a "Pokémon rip-off". While there have been no publicly revealed investigations on Palworld from Nintendo and The Pokémon Company before now, with the continued success of Palworld—and its upcoming expansion into global markets through a joint venture with Sony Music Entertainment and Aniplex—the situation seems to have reached a tipping point.

Nintendo's lawsuit is primarily focused on protecting its intellectual property. In a statement, Nintendo emphasised that the company "will continue to take necessary actions against any infringement of its intellectual property rights including the Nintendo brand itself, to protect the intellectual properties it has worked hard to establish over the years."

Pocketpair, on the other hand, has denied receiving any formal complaints prior to the lawsuit. In June 2024, Takuro Mizobe, CEO of Pocketpair, stated that Nintendo had yet to take any action against the company. Mizobe also expressed admiration for Pokémon, citing it as a major influence for his generation. 

What happens next?

The outcome of this lawsuit could have major implications for both companies and the gaming industry. For Nintendo and The Pokémon Company, a favourable ruling could set a strong precedent for future cases of IP infringement. For Pocketpair, the lawsuit poses a potential threat to the future of Palworld, especially with global expansion plans in the works.

For gamers, the situation raises questions about originality in game development. Palworld blends elements from multiple genres, but its similarities to Pokémon have fueled both its popularity and its legal troubles. Whether Palworld can differentiate itself enough to survive this lawsuit remains to be seen.