Palworld Dev Forced to Patch Game Amid Nintendo, Pokémon Lawsuit

Palworld developer Pocketpair has revealed that recent patches 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 on Steam and Game Pass for Xbox and PC, priced at $30. The game's massive success led to unprecedented profits and a subsequent deal with Sony to establish Palworld Entertainment, aimed at expanding the IP. The game later made its way to PS5.

Following its explosive launch, Palworld drew comparisons to Pokémon, with some accusing Pocketpair of copying Pokémon designs. Instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking 5 million yen each plus late payment damages and an injunction to halt Palworld's release.

In November, Pocketpair confirmed it was being sued over three Japan-based patents related to capturing Pokémon in virtual fields. Palworld features a similar mechanic with the Pal Sphere, reminiscent of the gameplay in the 2022 Nintendo Switch title Pokémon Legends: Arceus.

Six months later, Pocketpair admitted that changes made in Patch v0.3.11, released in November 2024, were a direct result of the lawsuit. This patch altered the summoning mechanic from throwing Pal Spheres to a static summon beside the player, alongside other gameplay modifications. Pocketpair emphasized that these changes were necessary to avoid further gameplay deterioration.

Additionally, with the release of Patch v0.5.5, Pocketpair introduced further adjustments to comply with legal demands. Gliding in the game will now require a glider instead of using Pals, although Pals will still offer passive gliding buffs. These modifications were described by Pocketpair as "compromises" made to prevent an injunction that could disrupt the development and sale of Palworld.

Despite these changes, Pocketpair remains committed to challenging the validity of the patents in question. In a full statement, the developer expressed gratitude for fan support and apologized for the lack of transparency during the litigation. They reiterated their dedication to Palworld's development and promised to deliver exciting new content.

At the Game Developers Conference (GDC) in March, John "Bucky" Buckley, communications director and publishing manager for Pocketpair, discussed the studio's challenges, including accusations of using generative AI and stealing Pokémon models. Buckley also touched on the unexpected nature of the patent lawsuit from Nintendo, describing it as a "shock" to the studio.