The lawsuit Nintendo filed against Pocketpair over Palworld in September 2024 sent a ripple through the gaming world.
The legal case accusing Palworld of patent violations left many, including Pocketpair, shocked. The indie studio completed legal reviews before the game's release to ensure compliance in Japan, but Nintendo moved ahead with patent claims. The legal action called for both an injunction on the game and financial damages totaling 5 million yen.
During GDC 2025, John Buckley from Pocketpair told PCGamer about the moment they found out about the lawsuit. "It didn't feel good obviously," he admitted, recalling how Nintendo's announcement blindsided the team. He explained that while Pocketpair expected some controversy over Palworld's monster-catching mechanics, they didn't expect a full patent lawsuit.
The studio quickly got in touch with its lawyers, who then contacted the courts, confirming that the lawsuit was focused on patents tied to game mechanics rather than copyright issues. Nintendo took legal action against Palworld's "Pal Sphere" for its resemblance to Pokémon's Poké Balls.
It was even more sketchy when Nintendo went ahead and applied for patents right after Palworld's success, fast-tracking everything to make their case solid.
This aggressive legal move drew criticism from industry analysts who saw it as an attempt to suppress competition rather than a genuine intellectual property issue. Buckley called the day the lawsuit was announced one of the company's darkest moments. "Pretty much everyone at Pocketpair is a huge fan, so it was a very depressing day, everyone heads down and walking in the rain."
The timing made the emotional impact even harder, especially with Pocketpair getting ready for big moments like the Palworld PlayStation launch and their Tokyo Game Show appearance. The lawsuit forced them to reduce their plans and bring in security guards to prevent any possible backlash.
Palworld had been in hot water over controversy long before Nintendo's lawsuit. Since its January 2024 launch, the game drew criticism for its resemblance to Pokémon, with some players dubbing it "Pokémon with guns." Social media saw an influx of plagiarism claims, all from side-by-side comparisons of Palworld's creatures and Nintendo's well-known franchise.
Some critics also speculated that the game had been generated using AI, a claim that Buckley strongly refuted. "I could stand here and tell you we didn't AI-generate Palworld, but at least five people in this room are going to say 'liar,'" he said.
The backlash against the game became so intense that it took a personal toll on Pocketpair's artists due to the allegations. The studio responded by countering the accusations, sharing concept art, and detailing their internal "Pal Vote" system.
This process allowed developers to vote on creature designs before finalizing them, which showed that Palworld's creative direction was far from a copy-and-paste effort. Even so, the debates over plagiarism and AI continued, making Palworld what Buckley described as an "impressions printing machine."
The legal issues may have delayed progress, but Pocketpair continues to move forward, proving that setbacks won't stop them from developing the game they set out to create.