Why are Nintendo and The Pokémon Company suing the ‘Palworld’ developer?

Nintendo and The Pokémon Company are suing Pocketpair, creators of the viral game Palworld, alleging it infringes on patents tied to the Pokémon franchise. The lawsuit, filed in Tokyo District Court, accuses the game of mimicking core gameplay elements from Pokémon.

Palworld, which gained popularity in January 2024, has been nicknamed “Pokémon with guns” by fans. The game lets players capture creatures called “Pals” using “Palspheres” after weakening them in battles, a mechanic strikingly similar to Pokémon. Some creatures, like Sparkit — a yellow, electricity-based Pal — bear a strong resemblance to iconic Pokémon like Pikachu.

What sets Palworld apart is its commercial success. Selling 7 million copies in five days, it earned $189 million in Steam sales and became one of Steam’s most-played games. Pocketpair’s CEO, Takuro Mizobe, claims the company didn’t intend to infringe on intellectual property and insists the game underwent legal reviews. However, the lawsuit suggests Nintendo and The Pokémon Company disagree.

The lawsuit outlines three specific patent violations and seeks an injunction to stop Palworld’s distribution. It also demands over 10 million yen (about $65,000) in damages. This isn’t The Pokémon Company’s first move against Palworld — earlier this year, they forced the takedown of a mod that replaced Pals with Pokémon.

The gaming community now watches closely, as the case’s outcome could set a precedent for indie developers drawing inspiration from popular franchises.