Palworld developer Pocketpair has confirmed that recent updates to the game were influenced by an ongoing patent lawsuit filed by Nintendo and The Pokémon Company. Launched in early 2024, Palworld quickly became a sensation, breaking sales and concurrent player records on Steam and Game Pass for Xbox and PC. The game's success led Pocketpair to sign a deal with Sony to establish Palworld Entertainment, aimed at expanding the franchise, eventually bringing the game to PS5.
The controversy arose due to similarities between Palworld's Pals and Pokémon, leading to accusations of design plagiarism. However, instead of pursuing a copyright claim, Nintendo and The Pokémon Company opted for a patent lawsuit, seeking damages and an injunction to halt Palworld's distribution.
Pocketpair acknowledged the lawsuit in November, revealing it was centered around three Japanese patents related to capturing creatures in a virtual field, a mechanic similar to that in Pokémon Legends: Arceus. In response to the legal action, Pocketpair made significant changes to Palworld. Patch v0.3.11, released in November 2024, altered the summoning mechanism from throwing Pal Spheres to a static summon beside the player, among other adjustments. This was confirmed as a direct result of the litigation.
Further changes came with Patch v0.5.5, which modified the gliding mechanic to require a glider instead of using Pals, though Pals still offer passive gliding buffs. Pocketpair described these alterations as necessary "compromises" to avoid a potential injunction that could disrupt the game's development and sales.
Despite these concessions, Pocketpair remains committed to contesting the lawsuit, arguing the invalidity of the patents. The studio expressed regret over the changes but emphasized their necessity to continue developing Palworld without further interruptions.
In a statement, Pocketpair thanked fans for their support and apologized for the lack of transparency due to ongoing legal issues. They reaffirmed their dedication to delivering new content and enhancing the Palworld experience.
At the Game Developers Conference in March, Pocketpair's communications director, John "Bucky" Buckley, discussed the studio's challenges, including the unfounded accusations of using generative AI and stealing Pokémon models, as well as the unexpected patent lawsuit from Nintendo.
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