Pocketpair Forced to Patch Palworld Amid Nintendo, Pokémon Lawsuit

Palworld developer Pocketpair has revealed that recent changes 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 Xbox and PC via Game Pass, Palworld shattered sales and player concurrency records. The game's massive success led Pocketpair to form a new business, Palworld Entertainment, in collaboration with Sony, to expand the IP. The game later became available on PS5.

Following its explosive launch, Palworld faced accusations of copying Pokémon designs, prompting a patent lawsuit rather than a copyright infringement claim from Nintendo and The Pokémon Company. They are seeking 5 million yen (about $32,846) each, plus damages for late payment 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 throw a Pal Sphere to capture monsters, akin to the system in Pokémon Legends: Arceus.

In a recent update, Pocketpair admitted that changes in Patch v0.3.11, released in November 2024, were a direct result of the lawsuit. This patch altered the summoning of Pals from throwing Pal Spheres to a static summon next to the player and made other mechanical adjustments. Pocketpair stated that without these changes, the gameplay experience would have deteriorated further.

Additionally, Patch v0.5.5 introduced more modifications, shifting gliding from using Pals to requiring a glider from the player's inventory, although Pals still offer passive gliding buffs. Pocketpair described these alterations as "compromises" made to avoid an injunction that could block Palworld's development and sales.

Despite these adjustments, Pocketpair remains committed to challenging the lawsuit, arguing the invalidity of the patents in question. In a comprehensive statement, the studio expressed gratitude for fan support and apologized for the limited transparency during the legal proceedings. They emphasized their dedication to continuing Palworld's development and delivering new content.

During the Game Developers Conference (GDC) in March, John "Bucky" Buckley, Pocketpair's communications director and publishing manager, discussed these challenges at the 'Community Management Summit: A Palworld Roller Coaster: Surviving the Drop.' Buckley addressed the accusations of using generative AI and stealing Pokémon models, which have been debunked, and touched on the unexpected nature of Nintendo's lawsuit.