By: Tavis McClain

Introduction

On September 18, 2024, Nintendo and the Pokémon Company filed a lawsuit against Pocketpair, the developer of Palworld. For those unfamiliar with either of the games, Pokémon is an iconic franchise that has been around since 1996. The Pokémon video games are a staple of the franchise that allow players to catch, trade, and battle with the over 1,000 different Pokémon the franchise has created. Unlike Pokémon, Palworld is a new video game developed by Pocketpair that was released on January 19, 2024. Similar to Pokémon, Palworld allows players to catch and battle with creatures referred to as “pals” but also contains many other features such as the ability to use weapons and build bases. Soon after Palworld released, the Pokémon company released a statement leading many to believe a lawsuit was imminent. However, contrary to the speculation of most people, the lawsuit filed by Nintendo is for patent infringement rather than copyright infringement Further, Nintendo has filed the lawsuit in Japan rather than the United States.

 What’s a Patent and How Do They Work in Video Games?

Patents are a form of intellectual property that is meant to protect the inventions, processes, designs, and more from the general public. The federal rules that govern patents are codified in U.S.C. Title 35. Patents give inventors an incentive to invest in research that either solves issues or improves upon existing solutions. Patents accomplish this by providing exclusive rights to inventors to use their inventions. In the gaming world, developers are constantly searching for new technology, features, and designs that will make their game stand out from the rest. 

People are familiar with copyrights in video games. This can range from the code a video game is made with to the game’s presentation or character designs. On the other hand, patents in video games protect new features or designs such as mini games on loading screens or the directional pad on the Nintendo controller. Lawyers in this field are given the difficult task of filing or litigating patents that are broad enough to meaningfully protect the property of the client while also keeping the language narrow enough to prevent the patent from being denied based on prior art. In other words, patents cannot protect inventions that are already in use, they must be original.

What Claims Are Being Asserted by Pokémon?

As previously mentioned, Pokémon has sued Pocketpair in Japan which has different laws for patents than the United States. The primary differences relate to procedure. For example, the time restrictions of filing divisional claims are much more strict in Japan than the United States. A divisional claim builds off a pre-existing claim to protect ideas that strongly relate to the pre-existing claim. While there are different procedural rules for obtaining patents in each country, the idea is the same in that both countries use patents to encourage innovation. At the moment, it is unclear which specific patents Pokémon is claiming that Pocketpair has violated. Based on Japanese patents that Nintendo already has, it is reasonable to believe that their claims are related to different aspects of catching and/or riding Pokémon using player characters. Each of these patents were filed as divisional claims from pre-existent families after the release of Palworld.

What is the Likely Outcome of the Lawsuit

In all likelihood this dispute will end with a settlement between the parties. Pokémon wants Palword to be removed from the market while Pocketpair wants to keep Palworld on the market. To reconcile these differences, the companies will likely arrive at a compromise where Palworld makes some changes in their games that address the patent infringement claims that Pokémon has asserted. Pocketpair, while a large game development company in Japan, does not have the influence and resources of a company like Nintendo. As a result, Nintendo will likely have more leverage in the negotiation and is better equipped to endure a trial than Pocketpair. 

Pros and Cons 

Assuming a settlement is reached that compels Pocketpair to make changes to Palword or Nintendo wins at trial, this would allow Nintendo to protect their intellectual property that they heavily invested resources into creating. If Nintendo and other companies had no recourse to prevent their competitors from copying and profiting from their ideas, these companies would be disincentivized from researching new technology. Alternatively , the impacts of this lawsuit could have negative impacts on consumers. Many long-time Pokémon fans have complained about the franchise’s neglect to incorporate features in their game that appeal to a more mature audience. Palworld was able to capture many of these features fans had asked for such as the ability to play alongside multiple friends, build bases, and use weapons. If Palworld is removed from the market because of the lawsuit, consumers may interpret the ruling as deterring competition. 

Conclusion

The lawsuit may take years to play out, but game development companies will closely monitor the situation. The decision could reshape the landscape of game development, innovation, and the complex world of intellectual property in gaming. Stay tuned as this legal saga continues to develop!

#patents #videogames #IP #entertainment