The release of Palworld generated significant buzz, but it was also met with allegations that the developers had extensively borrowed from the Pokémon franchise in terms of gameplay and creature design. Nintendo responded by announcing an investigation into the game for possible copyright violations.
After an eight-month hiatus, Nintendo's legal team appears to have amassed sufficient evidence and has publicly declared its intent to pursue a patent infringement lawsuit against Palworld. However, this legal action could also expose Nintendo to considerable risk.

Nintendo's success in court is far from guaranteed. Not only could the lawsuit fail, but the Pokémon creators also risk losing their patent.
This is because formulating a patent is a very delicate matter. It's necessary to ensure that intellectual property is defined neither too narrowly nor too broadly.

If a very specific formulation is chosen, it makes it easy for others to circumvent the patent. On the other hand, if the claims are formulated too generally, the patent is easier to challenge. In this case, it would be easier to prove that something similar already existed before.
Nintendo's patents will most likely form the basis of the lawsuit. As an example of a claim that is formulated too generally, it cites the following sentence, which could apply to almost any game:

"Controlling a player character in a virtual space based on input commands."

If the Palworld developers manage to prove in court that the claims from Nintendo's patents (such as a specific monster design or gameplay concept) can already be found in previous games, the Pokémon creators could not only lose in court.

In this case, there are mechanisms in both Japanese and US patent law that invalidate a patent that is used against someone. It is believed that this danger is very real for Nintendo. With the lawsuit, the corporation has made itself very vulnerable.

There you have it, everything you need to know about the Nintendo & Palworld lawsuit in about 1 minute.. thanks for watching

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