Pocketpair, the developer of Palworld, is actively contesting a lawsuit filed by Nintendo and The Pokémon Company, which alleges that Palworld infringes upon three patents related to monster-catching gameplay mechanics.
These patents were filed between February and July 2024, all pertaining certain features such as capturing creatures using items like balls and directing them in specific ways.

In their defense, Pocketpair has submitted preparatory briefs arguing that the patented mechanics were already present in earlier games, rendering the patents invalid due to prior art. They cite their own game, Craftopia, as well as titles like Rune Factory 5, Titanfall 2, and Pikmin 3 Deluxe, which feature similar mechanics involving the release of creatures or items in a particular direction.
Additionally, they reference games such as Far Cry 5 and Tomb Raider for the use of various throwable objects, and Octopath Traveler, Monster Super League, Fallout 4’s NukaMon mod, Monster Hunter 4G and Final Fantasy XIV for systems that allow players to select targets and display capture success probabilities.

Both Nintendo and The Pokémon Company are each seeking damages of up to 5 million yen, along with late payment fees.
Despite these legal challenges, Palworld has achieved significant commercial success, attracting well over 25 million players within its first month of release through Steam Early Access and Xbox Game Preview.