Nintendo Seeks Significant Financial Compensation in Palworld Legal Dispute

Update on the Palworld Legal Battle with The Pokémon Company

Developer Pocketpair has provided a significant update regarding the ongoing legal dispute with The Pokémon Company and Nintendo. This case has captured the attention of both gaming and legal communities.

The Demand for Compensation

On November 8, 2024, Pocketpair announced that The Pokémon Company and Nintendo are seeking a compensation amounting to ¥10 million (approximately $66,000 or £50,000), to be divided between the two companies. This claim also includes late payment damages.

The Origins of the Lawsuit

The legal action began on September 19, 2024, when The Pokémon Company filed a lawsuit against Pocketpair. The lawsuit accuses Pocketpair of infringing upon Pokémon intellectual property (IP), seeking both an injunction against future infringements and compensation for damages allegedly caused by this infringement.

Nature of the Allegations

Nintendo’s original press release stated that the lawsuit aims to stop the infringement and recover damages, asserting that the game Palworld, developed by Pocketpair, violates multiple patent rights. However, the precise details of the alleged patent infringements remain undisclosed by either party.

Electrabuzz from Palworld next to Pikachu from Pokémon — Pocketpair and The Pokémon Company

Expert Insights on Potential Infringements

While specifics about the patents in question have not been publicized, legal experts suggest that one of the disputed patents likely pertains to the mechanics of throwing an item to capture creatures, a gameplay feature central to both franchises.

Next Steps for Pocketpair

Pocketpair has openly indicated their intention to contest the claims in court. In their statement, they remarked, “The Plaintiffs claim that Palworld, released on January 19, 2024, infringes upon the following three patents held by the Plaintiffs, and are seeking an injunction against the game and compensation for a portion of the damages incurred between the date of registration of the patents and the date of filing of this lawsuit.”

Furthermore, Pocketpair stated, “We will continue to assert our position in this case through future legal proceedings.” They have also indicated a shift in their communication strategy, deciding to refrain from individual responses regarding this matter, opting instead to provide updates through official channels as necessary.

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