What is patent infringement? Nintendo & Pokemon’s Palworld lawsuit explained

After months of speculation, Nintendo and The Pokemon Company have taken legal action against Palworld developer Pocketpair on the grounds of patent infringement. Here’s what that means.

Ever since Palworld’s January 2024 early access release, Pokemon fans have noted the clear similarities between Pocketpair’s game and the long-running franchise – to the point that many dubbed it “Pokemon with guns.”

The Pokemon Company was quick to address the controversy at the time, saying “We intend to investigate and take appropriate measures to address any acts that infringe on intellectual property rights related to the Pokemon.” A couple of weeks later, Nintendo President Shuntaro Furukawa added the company would “take appropriate action against those that infringe our intellectual property rights.”

Now, the companies have jointly filed a lawsuit against Pocketpair, alleging in a statement that Palworld “infringes multiple patent rights.”

But while the lawsuit itself isn’t much of a surprise, the fact that it centers on patent infringement has some fans scratching their heads. After all, Palworld’s survival gameplay is quite different from Pokemon’s turn-based battles, and criticism of the game has mainly centered around unoriginal-seeming creature designs.

To help you wrap your head around Nintendo and The Pokemon Company’s lawsuit against Pocketpair, we’ll break down what patent infringement is and how it might apply in this unfolding legal case.

What patent infringement is

The Pokemon Company

To start, a patent is a type of intellectual property that allows the owner to decide who can make, use, or sell an invention for a period of time in the country or region where the patent is granted. Since it only protects the holder in that specific place, international companies like Nintendo have to file for patents in every country where they seek protection.

As WIPO explains, patents give inventors legal protection for their work but also require the applicant to provide detailed technical information about the invention. This becomes publicly available, which is meant to promote innovation.

Cornell Law School defines patent infringement as “the unlawful use, selling, or copying of a patented invention.” In simpler terms, it’s when someone takes intellectual property (whether it be a physical, technical, or intellectual invention) that is protected by a patent and uses it without permission from the patent holder.

How patent infringement is enforced

In the United States, patent infringement cases are civil (rather than criminal), meaning the potential penalties have to do with stopping the alleged infringer from continuing their behavior and possible monetary compensation for the patent holder.

However, under Japanese law, patent infringement can be either a criminal or civil offense.

According to the Patent Act, those found guilty face up to 10 years in prison and/or a fine of up to 10,000,000 yen, though criminal punishments for such cases are incredibly rare. According to RYUKA, a Japanese law firm specializing in patent law, a March 2024 case involving a shoe patent is the first criminal patent case since 1989.

While very little information on Nintendo’s lawsuit is publically available right now, the company’s statement says it seeks “an injunction against infringement and compensation for damages”, indicating the lawsuit is purely civil.

Article 100 of Japan’s Patent Act gives patent holders the right to seek an injunction, which is a court order for the defendant to stop any behavior that infringes on the patent in question.

How patents differ from copyrights and trademarks

PocketPair / Niantic

The biggest difference between patents, copyrights, and trademarks comes down to what they protect.

• Patents, as mentioned, protect technical inventions ranging from machinery to software.
• Copyrights protect original created works, including novels, artwork, and software code.
• Trademarks cover words, phrases, or designs that identify or distinguish the trademark holder’s goods or services.

As business attorney Richard Hoeg explained to Dexerto, the fact that this is a patent infringement suit and not a copyright claim means the case isn’t about “copies of Pokemon themselves, but rather some aspect of the game design that Nintendo and The Pokemon Company protected as a new invention (patented).”

Do we know what patents Nintendo is suing over?

It’s important to note that, we do not currently know what specific patents Nintendo claims Pocketpair has infringed upon.

In Pocketpair’s response to the lawsuit, the developer claims “we are unaware of the specific patents we are accused of infringing upon, and we have not been notified of such details.”

Given the clear gameplay difference between Palworld and Pokemon, it’s not immediately obvious what Nintendo is basing its lawsuit on. However, since patents are public, it’s possible to review what patents the Nintendo and The Pokemon Company hold.

Games journalist Stephen Totilo identified a patent that could be involved that has to do with a character throwing an item to catch a monster while in a field. The patent was approved in the U.S. in 2023 and is based on a Japanese patent filed in late 2021.

The Japanese application specifically refers to Pokemon Legends Arceus, which allows players to throw Poke Balls in the overworld rather than limit catching to wild battles. It also includes what looks to be a version of the game’s Pokedex pages, which tracks information like how many times the player has encountered the Pokemon in question or has seen it use a specific move.

Palworld does contain catching mechanics similar to Pokemon Legends Arceus, so this may be one of the patents included in the lawsuit.

Additionally, developer Pirate Software speculates that the lawsuit relates to Palworld’s Pal Spheres, which are pretty similar to Poke Balls. Nintendo filed a patent for this in Japan back in December 2021 and got it approved in November 2023; the U.S. equivalent was filed in May 2024 and approved in August 2024.

However, it’s important to stress this is all speculation. The full lawsuit has not yet been made public, and Dexerto was unable to obtain a copy from the Tokyo District Court. We’ll be sure to update this page once more information about the lawsuit and the patents involved is available.