Pokemon Creators Sue Palworld Maker Over Game

Palworld developer Pocketpair has stated that recent game patches were implemented due to requirements arising from an ongoing patent lawsuit involving Nintendo and The Pokémon Company.

Launched in early 2024 at $30 on Steam and immediately available on Xbox and PC Game Pass, Palworld shattered sales and concurrent player records. According to Pocketpair CEO Takuro Mizobe, the game’s launch was so overwhelmingly successful that the studio struggled to manage the substantial revenue it generated. Despite this, Pocketpair moved quickly to leverage the game’s popularity, securing a partnership with Sony to establish a new entity named Palworld Entertainment, aimed at expanding the IP. The game was later released on PS5.

Following its explosive debut, comparisons quickly arose between Palworld’s creatures, known as Pals, and Pokémon, with some critics accusing Pocketpair of copying Pokémon designs. Instead of pursuing a copyright claim, Nintendo and The Pokémon Company opted for a patent lawsuit. They are seeking 5 million yen (approximately $32,846) each, along with compensation for delayed payments, and an injunction to halt Palworld’s distribution.

In November, Pocketpair confirmed the three Japanese patents central to the lawsuit, which relate to capturing Pokémon in a virtual environment. Palworld does include a mechanic where players throw a ball-like item (called a Pal Sphere) at creatures in the wild to capture them, resembling a feature present in the 2022 Nintendo Switch exclusive Pokémon Legends: Arceus.

Six months later, Pocketpair has now acknowledged that recent alterations to the game were directly influenced by these legal challenges. The developer confirmed that Patch v0.3.11, released in November 2024, was a response to the ongoing lawsuit—as many players had suspected. This update eliminated the ability to summon Pals by throwing Pal Spheres, replacing it with a static summon near the player. Several other gameplay mechanics were also adjusted.

Pocketpair explained that failing to implement these changes would have "resulted in a significantly worse gameplay experience for players."

But the adjustments did not end there. The studio announced that the latest Patch v0.5.5 introduces further changes, requiring players to use a glider for aerial movement instead of relying on Pals. Pals in the player’s party will still offer passive gliding bonuses, but a glider must now be carried in the inventory to use the ability.

Pocketpair described these updates as “compromises” forced upon the studio to avoid a potential injunction that could suspend Palworld’s development and sales.

“We know this is disappointing news for many, just as it is for us, but we hope our community understands that these steps are essential to preventing further disruptions to Palworld’s development,” Pocketpair stated.

Despite these modifications, the developer emphasized that it will continue to contest the allegations in the lawsuit and challenge the validity of the patents in question.

Below is Pocketpair’s full statement:

We want to extend our heartfelt thanks to our fans for their incredible support over the past few months. We apologize for not being able to share more information during this time, but we trust you understand the challenges of maintaining full transparency amid ongoing legal proceedings.

We are currently engaged in extended litigation over alleged patent infringement. While we continue to dispute these claims and challenge the validity of the patents, we have had to make certain compromises to ensure the continued development and distribution of Palworld.

On November 30, 2024, we released Patch v0.3.11 for Palworld. This update removed the feature allowing players to summon Pals by throwing Pal Spheres, replacing it with a static summon near the player. Other gameplay mechanics were also adjusted. As many guessed, these changes were directly related to the ongoing lawsuit. Everyone at Pocketpair was disappointed by this adjustment, and we recognize that players share this frustration. Unfortunately, given that the alternative would have severely impacted the player experience, we determined this step was necessary.

Additionally, with the release of Patch v0.5.5, we must implement another compromise. Starting with this update, gliding will require the use of a glider item rather than Pals. Pals in your party will still provide passive gliding enhancements, but a glider must now be in your inventory to glide.

We understand that this will be disappointing news for many, as it is for us, but we hope our fans recognize that these measures are needed to avoid further disruption to Palworld’s development.

We also apologize for any unease and concern this litigation has caused within our community.

We remain dedicated to developing Palworld and bringing exciting new content to our players.
On behalf of the entire Pocketpair team and Team Palworld, thank you once again for your steadfast support.

At the Game Developers Conference (GDC) in March, IGN held an in-depth conversation with John “Bucky” Buckley, Communications Director and Publishing Manager at Pocketpair.

The discussion followed his conference session, “Community Management Summit: A Palworld Roller Coaster: Surviving the Drop.” During his talk, Buckley openly addressed several challenges Palworld has faced, including allegations of using generative AI (which Pocketpair has thoroughly refuted) and stealing Pokémon’s models for its Pals (a claim the original accuser has since retracted). He also commented on Nintendo’s patent lawsuit, noting that it “came as a shock” to the studio and was “something no one had anticipated.”