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Nintendo may only receive a $30,000 payout if it wins its high-profile legal battle with Palworld developer Pocketpair, an IP expert has said. But it’s looking increasingly likely that Nintendo will lose.
Nintendo and The Pokémon Company are currently embroiled in ongoing litigation with Pocketpair in Japan, with patents that revolve around how Pokémon games work at the heart of the lawsuit.
Palworld arrived on Steam priced $30 and launched straight into Game Pass on Xbox and PC in early 2024, breaking sales and concurrent player number records in the process. Pocketpair boss Takuro Mizobe has said Palworld’s launch was so big that the developer couldn’t handle the massive profits the game generated. Still, Pocketpair acted swiftly to capitalize on Palworld’s breakout success, signing a deal with Sony to form a new business called Palworld Entertainment that’s tasked with expanding the IP. It later launched the game on PS5.
After Palworld’s huge launch, comparisons were made between Palworld’s Pals and Pokémon, with some accusing Pocketpair of “ripping off” Pokémon designs. But rather than file a copyright infringement lawsuit, Nintendo and The Pokémon Company went down the patent route. In the initial lawsuit, the two companies called for 5 million
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