Palworld Developer Forced to Patch Game Amid Nintendo and Pokémon Lawsuit

Palworld developer Pocketpair has revealed that recent patches to the game were necessitated by an ongoing patent lawsuit with 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 overwhelming success led Pocketpair to establish Palworld Entertainment with Sony to expand the IP, eventually bringing the game to PS5.

The game's launch drew comparisons to Pokémon, prompting accusations of design plagiarism. Instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking 5 million yen each plus damages and an injunction to halt Palworld's distribution.

Pocketpair confirmed in November that it was being sued over three Japan-based patents related to capturing Pokémon in a virtual field. Palworld features a similar mechanic where players use a Pal Sphere to capture monsters, akin to the system in Pokémon Legends: Arceus.

In response to the lawsuit, Pocketpair implemented changes in Patch v0.3.11, released in November 2024, which modified the summoning of Pals from throwing Pal Spheres to a static summon next to the player. This patch, along with other mechanical adjustments, was a direct result of the legal action. Pocketpair stated that without these changes, the gameplay experience would have deteriorated further.

Further adjustments came with Patch v0.5.5, which shifted gliding mechanics from using Pals to employing a glider, although Pals still offer passive gliding buffs. These alterations were described by Pocketpair as "compromises" to avoid an injunction that could disrupt Palworld's development and sales.

Despite these changes, Pocketpair remains committed to challenging the lawsuit, arguing the patents' invalidity. In their statement, Pocketpair expressed gratitude for their fans' support and apologized for the limited transparency due to the ongoing litigation. They emphasized their dedication to continuing Palworld's development and delivering new content.

At the Game Developers Conference in March, Pocketpair's communications director, John "Bucky" Buckley, discussed the studio's challenges, including accusations of using generative AI and stealing Pokémon models—claims that have been debunked. Buckley also mentioned the unexpected nature of Nintendo's patent lawsuit, underscoring the shock it caused within the studio.