Nintendo and The Pokémon Company filed a lawsuit against Pocketpair, developer of the game Palworld, over patents related to catching creatures in a virtual field similar to Pokémon games. The suit demands 5 million yen (around $30,000 USD) in damages plus late payment penalties and an injunction blocking Palworld's release in Japan [1, 2].
Palworld originally featured a mechanic where players throw a Pal Sphere to capture monsters, resembling the system in Pokémon Legends: Arceus. After the lawsuit, Pocketpair patched the game in November 2024 to remove the Pal Sphere throwing mechanic. In May 2025, further changes replaced the use of Pals for gliding with a standalone glider, as part of efforts to comply with legal challenges [1].
Palworld launched on Steam in early 2024 priced at $30. It broke sales and concurrent player records, later expanding to Xbox Game Pass and PlayStation 5. Pocketpair even formed Palworld Entertainment with Sony to grow the intellectual property [1].
Most damages Nintendo seeks are limited to Palworld sales in Japan before the patents were approved and before Pocketpair patched out the infringing features. There are conflicting reports about the exact amount Nintendo initially sought—some say 5 million yen (~$30,000) plus late fees, others claim around $66,000. However, the payout may remain close to $30,000 due to those limitations [1, 2].
Pocketpair continues to contest the claims, arguing non-infringement and invalidity of the patents. If successful, Nintendo could receive no damages at all [2]. The court is set to deliver a ruling on November 9, 2026 [2].
