Palworld developer Pocketpair has disclosed that recent updates 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 achieved unprecedented sales and player engagement. The game's success led to the formation of Palworld Entertainment in partnership with Sony, aimed at expanding the franchise, and later, a release on PS5.
The similarities between Palworld's Pals and Pokémon sparked accusations of design theft. However, instead of pursuing a copyright infringement lawsuit, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking 5 million yen (approximately $32,846) each, plus damages for late payments, and an injunction to halt Palworld's release.
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 with the Pal Sphere, akin to the one in Pokémon Legends: Arceus. In response to the legal action, Pocketpair implemented changes in Patch v0.3.11, released in November 2024, which altered the summoning mechanism from throwing Pal Spheres to a static summon beside the player. This patch, along with other modifications, was a direct result of the litigation.
Further adjustments were made with Patch v0.5.5, where gliding mechanics shifted from using Pals to utilizing a glider, although Pals still offer passive gliding buffs. Pocketpair described these alterations as "compromises" made to avoid an injunction that could disrupt the game's development and sales.
Despite these changes, Pocketpair remains committed to challenging the validity of the patents in question. In a statement, the developer expressed regret over the necessary adjustments and apologized for the ongoing legal issues affecting the community. They emphasized their dedication to continuing the development of Palworld and delivering new content to their fans.
At the Game Developers Conference (GDC) in March, Pocketpair's communications director and publishing manager, John "Bucky" Buckley, discussed these challenges during his talk, 'Community Management Summit: A Palworld Roller Coaster: Surviving the Drop.' He addressed the accusations of using generative AI and stealing Pokémon models, which have been debunked, and briefly touched on the unexpected nature of the patent lawsuit from Nintendo.
