Nintendo’s Legal Tussle with Palworld: Just Chump Change on the Line?

Palworld, the quirky game that combines Pokémon-style monster-catching with a bit of firepower, has stirred up quite a bit of excitement. However, it’s also caught the eye of Nintendo’s notorious legal team. Back in 2024, Nintendo slapped a lawsuit on Palworld’s developer, Pocketpair, demanding around $66,000 over some Pokémon-related patents. While this amount might seem big for most developers, for a giant like Nintendo, it’s just pocket change. The real intention appears to be draining Pocketpair’s resources through a drawn-out legal battle.

Fast forward nearly two years, and Palworld continues to thrive, particularly on Steam, but things don’t look too bright for Nintendo in this legal showdown. Recent insights from IP expert Florian Mueller, who previously worked at Blizzard, suggest that Nintendo might end up with much less than it initially sought. In his analysis, he points out that the bulk of Palworld’s success occurred before certain patents were approved. This means Nintendo’s chances of claiming damages on sales made after the game was patched to comply with the patents are severely limited.

Furthermore, Mueller indicates that there’s a decent chance Pocketpair’s arguments against infringement could lead to Nintendo walking away empty-handed. The court is expected to deliver its verdict on November 9, and the most Nintendo can hope for, according to Mueller, is a mere 5 million yen—about $30,000. For Nintendo, that’s just a drop in the bucket compared to the legal fees they’ve racked up fighting this case.

This whole situation has sparked considerable debate about Nintendo’s strategy in protecting its patents, especially as videogame patent lawyer Kirk Sigmon labeled their latest Pokémon-related patents as a “failure of the US patent system.” Interestingly, amid all this legal drama, Pocketpair has kept its head high, even announcing a new card game that seems to borrow some familiar elements.

In the end, it’s somewhat refreshing to see Pocketpair come out of this mess relatively unscathed. Regardless of whether the lawsuit was justified, the threat of litigation often looms large over smaller companies, making it tough for them to compete. But for now, it seems like Palworld will continue to thrive while Nintendo’s legal efforts dwindle into what seems to be a financial non-issue.