Gotta catch ‘em all: an update on the Nintendo-Pocketpair lawsuit

Nintendo and The Pokémon Company made waves in the video game industry when they jointly announced a patent infringement lawsuit against Pocketair, Inc. back in September 2024.

Their press release cryptically alleged that Pokémon competitor and monster-catching game Palworld infringed “multiple patent rights.” With a new update posted by Pocketpair on its website on November 8, 2024, we now have more details about the alleged infringement.

Pocketpair’s statement lists three allegedly infringed Japanese patents and asserts that the plaintiffs are seeking the following relief:

1. Injunction against Palworld
2. Payment of 5 million yen to Nintendo
3. Payment of 5 million yen to The Pokémon Company.

Given the size of the Pokémon franchise, many were surprised at the relatively low amount of monetary damages being sought. After all, 5 million yen roughly translates to 25,000 GBP; 30,000 Euros; or 33,000 USD. This seems like a paltry sum for one of the highest-grossing video game franchises of all time but may be because Palworld was only recently released.

The more notable relief may therefore be the requested injunction against Palworld, which could hinder or even stop the game’s production.

While it may be possible for Pocketpair to avoid infringement of these patents by moving the development of Palworld outside of Japan, it is worth noting that each of the allegedly infringed patents appears to have one or more US counterpart applications. This means that simply moving production of Palworldmay not be a suitable long-term solution.

It is also worth noting that Palworld is currently in beta and is therefore still being developed. Assuming that Pocketpair modifies the software to avoid infringement, it may be possible to simply continue developing and selling Palworld. It may therefore be possible for Palworld to retain its identity as “Pokémon with guns” and continue sales by changing some features.

Pocketpair names three Japanese patents which are allegedly infringed:

• 7,545,191
• 7,493,117
• 7,528,390

Pocketpair’s statement also points out the filing dates of each patent. It is possible that this is intended to highlight that each of the allegedly infringing patents was filed after the release of Palworld in January 2024. However, as I have discussed previously, laws related to patent priority in many countries make it possible for a patent to be infringed by a previously released game.

At a high level, the first claim of patent number 7,545,191 covers the use and activation of “rideable characters” which are capable of moving in the air when an input is received while a player character is in the air. Palworld features a flying mount mechanic which may be the reason for asserting this patent.

The first claim of patent number 7,493,117 appears to cover a process for aiming and throwing a captured item at a character (for example, a Pokémon) in a virtual space to capture that character. The claim also mentions displaying an indicator over the target character which indicates a degree of difficulty for a successful capture. Palworld has a feature where a capture rate is displayed over a potential target before a player throws a “Pal Sphere” (conceptually similar to a Pokéball).

The first claim of patent number 7,528,390 generally covers the combination of two activities activated by respective inputs: directional aiming of a capture device used for capturing characters and making a player character take a stance to release a captured character to cause the captured character to fight a character in the field. Palworld utilizes the general concepts of catching and battling with captured characters.

If Pocketpair decides to go down the path of modifying Palworld to avoid infringement, they certainly have their work cut out for them! The patents asserted by Nintendo and The Pokémon Company relate to core mechanics of Palworldsuch as catching monsters and riding mounts.

Either way, given that Pocketpair has entered into a joint venture with Sony Music Entertainment and Aniplex, will Pocketpair simply give up without a fight?

Looking for more context about this lawsuit? My prior article covers the initial press release and what a patent infringement suit might mean for a video game company in more detail.

*Note: this article is not legal advice and does not form an attorney-client relationship. The article represents the author’s own views and not those of his employer or clients.

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