Palworld Developer Forced to Patch Game Amid Nintendo and Pokémon Lawsuit

Palworld developer Pocketpair has recently announced that changes made to the game through patches were necessitated by an ongoing patent lawsuit filed by Nintendo and The Pokémon Company. Launched early in 2024, Palworld quickly became a sensation, available on Steam for $30 and included in Game Pass for Xbox and PC. The game's launch was so successful that Pocketpair's CEO, Takuro Mizobe, admitted the company struggled to manage the immense profits. In response to the game's popularity, Pocketpair swiftly moved to expand its reach by establishing a new business venture with Sony called Palworld Entertainment, which later facilitated the game's release on PS5.

Following Palworld's launch, the game faced scrutiny and accusations of copying Pokémon designs. Rather than pursuing a copyright infringement case, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking 5 million yen (approximately $32,846) each, plus late payment damages, and an injunction to halt Palworld's distribution.

In November, Pocketpair acknowledged the lawsuit centered around three Japanese patents related to capturing Pokémon in a virtual field. Palworld features a similar mechanic where players capture monsters using a Pal Sphere. In response to legal pressures, Pocketpair released Patch v0.3.11 in November 2024, which altered the summoning mechanic from throwing Pal Spheres to a static summon next to the player, among other changes. This adjustment was confirmed to be a direct result of the ongoing litigation.

Pocketpair emphasized that without these changes, the gameplay experience would have suffered even more significantly. Furthermore, with the release of Patch v0.5.5, the mechanic for gliding was changed to require the use of a glider rather than relying on Pals, although Pals still offer passive gliding buffs. These modifications were described by Pocketpair as necessary "compromises" to avoid potential injunctions that could disrupt Palworld's development and sale.

Despite these alterations, Pocketpair remains committed to challenging the lawsuit, particularly focusing on the patents' alleged invalidity. In a statement, the developer expressed gratitude for fan support and apologized for the limited transparency during the legal proceedings. They reaffirmed their dedication to continuing Palworld's development and delivering new content to their community.

At the Game Developers Conference (GDC) in March, IGN interviewed John "Bucky" Buckley, communications director and publishing manager at Pocketpair. Buckley shared insights during his talk, 'Community Management Summit: A Palworld Roller Coaster: Surviving the Drop,' where he discussed various challenges faced by Palworld, including debunking accusations of using generative AI and stealing Pokémon models. He also touched on the unexpected nature of Nintendo's patent lawsuit against Pocketpair.