Pocketpair, the developer behind the hit game Palworld, has revealed that recent patches to the game were necessitated by an ongoing patent lawsuit filed by Nintendo and The Pokémon Company. Launched in early 2024 on Steam for $30 and simultaneously on Game Pass for Xbox and PC, Palworld shattered sales and concurrent player records. The game's monumental success led Pocketpair's CEO, Takuro Mizobe, to admit that the company was overwhelmed by the massive profits. Capitalizing on this, Pocketpair quickly inked a deal with Sony to establish Palworld Entertainment, aimed at expanding the IP, and later released the game on PS5.
Following Palworld's explosive debut, its Pals drew inevitable comparisons to Pokémon, with accusations of design plagiarism surfacing. Rather than pursuing a copyright infringement suit, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking 5 million yen (approximately $32,846) each, plus additional damages for late payments, and an injunction to halt Palworld's distribution.
In November, Pocketpair acknowledged the lawsuit centered around three Japan-based patents related to capturing Pokémon in a virtual environment. Palworld features a similar mechanic, where players throw a Pal Sphere to capture monsters in a field, reminiscent of the mechanic in the 2022 Nintendo Switch title, Pokémon Legends: Arceus.
Six months on, Pocketpair confirmed that the changes introduced in Patch v0.3.11 in November 2024 were indeed a direct result of the legal battle. This update eliminated the ability to summon Pals by throwing Pal Spheres, replacing it with a static summon beside the player, alongside other gameplay modifications. Pocketpair stated that without these changes, the gameplay experience would have deteriorated further.
Moreover, Patch v0.5.5, released recently, further modifies Palworld by changing the gliding mechanic. Players will now use a glider instead of relying on Pals, though Pals will still offer passive gliding buffs. To glide, players must have a glider in their inventory.
Pocketpair described these alterations as "compromises" forced upon them due to the threat of an injunction that could block Palworld's development and sales. The studio expressed disappointment but stressed the necessity of these changes to avoid further disruptions. Despite these adjustments, Pocketpair is continuing to challenge the lawsuit, focusing on the invalidity of the patents in question.
In a comprehensive statement, Pocketpair expressed gratitude for the support of their fans and apologized for the lack of transparency due to the ongoing legal proceedings. They reiterated their commitment to developing Palworld and delivering new content, while also acknowledging the disappointment and concern caused by the litigation.
During the Game Developers Conference (GDC) in March, IGN interviewed John "Bucky" Buckley, communications director and publishing manager at Pocketpair. Following his talk on community management and Palworld's challenges, Buckley discussed the unexpected nature of Nintendo's lawsuit, which he described as a "shock" to the studio, and the unfounded accusations of using generative AI and stealing Pokémon models, which have since been debunked and retracted.
