Summary
Palworldhas found itself at the center of a major legal battle against Nintendo, a huge player in the gaming industry. The conflict started in Japan but is moving to the United States, where the stakes could be much higher.
Nintendo’s Problem withPalworld
This isn’t about characters being stolen or code being copied; instead, it’s about Nintendo trying to claim ownership of basic game mechanics common in many games. Nintendo is known for being strict about protecting its intellectual property and has gone a lot further than most people realize.
Nintendo supposedly has been using its resources to create patents to keep a chokehold on the monster-hunting genre. The legal issues between the companies have gone so far that Nintendo has had dozens of patents rejected, which seem to have a lot in common withPalworld. The real question is whetherPalworldwill make it through this situation and whether big companies should be watched more carefully when they sue indie studios.
Nintendo has been actively taking legal action against Pocketpair, the developer ofPalworld, due to claims of patent infringement. This effort began whenNintendo filed a lawsuit in Japantargeting three specific patents related to gameplay elements that are similar in bothPokémonandPalworld. These patents focus on how characters are captured within the game, as well asthe mechanics of ridingand switching between different mounts.
Nintendo is still seeking significant financial compensation, an order to stop the distribution ofPalworld, and damages for the alleged infringement. At the same time, Nintendo has also been pursuing legal action in the United States. The company hassubmitted several patent applicationsthat target gameplay features thatPalworldshares.
Some of these applications were filed beforePalworldwas released, while others weresubmitted afterward, aiming to build a strong patent portfolio in the U.S. The goal of all these patents is to essentially not allow any other company, not just Pocketpair, to use features similar toPokémon. This is further than a feature or a mechanic; this is like trying to patent a genre.
These actions show that Nintendo is undertaking a carefully planned and aggressive legal campaign. By filing many patent applications quickly, both before and afterPalworld’slaunch, Nintendo is trying to assert its intellectual property rights and limit competition. Their strategy of focusing on patents rather than copyright infringement indicates a deliberate choice to concentrate on specific gaming mechanics rather than character designs. This is because a design can be changed, but a mechanic is core to gameplay.
The U.S. Patent Office Seems Wise to Nintendo’s Tactics
The U.S. Patent and Trademark Office (USPTO) has been careful and thorough in reviewing Nintendo’s patent applications related toPalworld. The USPTO hasrejected many claimsbecause they found them lacking in originality or inventiveness. This shows that the USPTO is critically evaluating how much merit Nintendo has when going after patents. This is leading down a dangerous road.
One example isU.S. Patent Application No. 18/652,883, which focuses on the “smooth switching” between riding objects in a game. Nintendo submitted 23 claims, but the USPTO rejected 22 of them for not being new or inventive enough. Only one claim was left, but it was only objected to, not fully rejected. The issue was that it relied on a previously rejected claim, so the USPTO said it needed to be rewritten as a standalone claim.
In another case, although Nintendo was granted some patents related to character capture (U.S. Patent No. 12,179,111andU.S. Patent No. 12,220,638), there is still a lot that needs to be submitted and approved before Nintendo has enough to claim the monster-catching genre. This may have started atPalworld, but the number of patents the USPTO is fending off seems to show Nintendo never wants to deal with a competitor forPokémonagain.
The USPTO’s actions reveal a strict standard for patent approval, carefully examining Nintendo’s claims and dismissing those that do not meet the required level of novelty or inventiveness. This shows that the office is more than just a bunch of pencil pushers; the workers are actively trying to address the merit of each application.
It bodes well, but Nintendo has a lot of time and money to get all these patents in.
PalworldMay Soon Get Taken Down In the U.S.
Nintendo doesn’t just needPalworldto go down in Japan; the company needsPalworldto be taken down in the U.S. That’s why Nintendo is extending the patents to the U.S. This is because Nintendo needs Pocketpair to lose any income it is getting fromPalworld, and cutting off a big supplier of money would be a big win for Nintendo.
One major concern is that Nintendo could succeed in getting a temporary injunction, which is a ban onPalworld’ssales in the U.S. If this happens, it would stop all sales of the game in that market, leading to a big loss in revenue and hurting Pocketpair’s overall business. That’s the kind of thing that could make Pocketpair go under. However, Nintendo’s tendency not to work well with other console manufacturers could be its undoing.
Nintendo and PlayStation have a long history of competing. Sony originally worked with Nintendo to make the PlayStation, but Nintendo pulled out of the deal and worked with Sony’s competitor, Phillips. This was one thing, but Nintendo did it without saying anything to Sony before going public with the news, leaving Sony looking silly for announcing its partnership with Nintendo the day before.
Pocketpair’srecent deal with Sonyis directly related toPalworld. It wouldn’t be prudent for Sony to allow a direct competitor with a bad history to take down PlayStation’s lucrative partnership. Microsoft also has gained a lot from havingPalworldon Game Pass. Xbox has been pushingGame Pass to more platformsand wouldn’t want such a popular game to be taken down, either. While Nintendo is huge and has the money to make this last, Sony and Microsoft have a lot of money, too, and a lot of reasons to fight back.
Neither platform maker has stepped in yet, but it must be whispered in the boardrooms occasionally. Maybe they are both waiting for an opportunity to act because if Nintendo can patent the genre slowly but surely, the pair will lose out in a big way to take on Nintendo.
Nintendo Has a Lot of Money and Can Win a War of Attrition
Nintendo has a lot of financial power, which helps it fight long legal battles like the one againstPalworld. The company makesbillions in revenue every yearand has high-profit margins, giving it a strong financial position. This financial strength allows Nintendo to outlast smaller competitors in legal disputes.
A “war of attrition,” in legal terms, is a strategy where each side drains the other’s resources through lengthy lawsuits. The party with more money usually wins, as the costs of prolonged litigation can be overwhelming for smaller companies. Nintendo can afford to keep fighting in court without worrying about costs, whereas a smaller company like Pocketpair might struggle to stay afloat if a legal fight drags on.
Nintendo’s consistent profits and strong cash flow mean they can hire top lawyers and experts for as long as needed, no matter how much it costs. Nintendo’s financial stability comes from having money and making smart business decisions and very successful products. Nintendodoesn’t introduce price drops often, and evenremoves deals that could lose moneyfor the company.
Nintendo obviously sees Pocketpair as a real threat toPokémon. Players have wanted a grown-up version of the popular monster-catching game for a long time, and someone finally filled that role. Nintendo will give everything it can until something stops it. Worse, if Nintendo wins, there’s not much to stop the company from going further. The monster-catching genre may be the first as Nintendo attempts to patent staples from other genres.
This fight betweenPalworldand Nintendo hasn’t ended. While Nintendo has turned up the heat against Pocketpair, it seems like the main goal of the company is not just to take downPalworld. Nintendo may want to control the entire monster-catching genre.
