The U.S. Patent and Trademark Office has rejected a core patent at the heart of Nintendo's legal campaign against Palworld, dealing a potential setback to the gaming giant's ongoing dispute with developer Pocketpair.
The rejection came through a non-final ruling after the USPTO ordered a reexamination of the patent last November, following sustained criticism from intellectual property experts. The patent in question covers the foundational mechanic of Pokémon games: summoning creatures to battle one another in hopes of capturing them for a collection.
IP experts had argued the patent should never have been granted in the first place. Florian Mueller, an IP specialist, stated publicly that Nintendo "should never" have received the patent, while video game patent attorney Kirk Sigmon told PC Gamer the claims "were in no way allowable."
The USPTO's rejection cited "prior art" references drawn from earlier published patent applications—two filed by Nintendo itself, along with one each from Konami and Bandai Namco. The decision undermines Nintendo's argument that the "summon character and let it fight" concept represents a patentable invention, since comparable mechanics appear across numerous games including Persona, Digimon, and even Elden Ring, depending on how the patent scope is interpreted.
What Happens Next
The ruling is not final. Nintendo can and likely will appeal the decision, prolonging the reexamination process considerably. However, the rejection carries significant implications for Nintendo's lawsuit against Pocketpair in Japan, which has remained largely silent since October 2024.
Nintendo and The Pokémon Company are seeking 5 million yen (approximately $32,846) in damages from Pocketpair, plus an injunction that would block Palworld's release. The Japanese case centers on three patents: two covering monster capture and release mechanics, and one addressing the ability to ride characters. All three were filed in Japan in 2024—after Palworld's explosive launch—but derive from earlier Nintendo patents dating to 2021.
The strategy suggests Nintendo created targeted divisional patents specifically designed to challenge Palworld after its unexpected success. Presiding Judge Motoyuki Nakashima of the Tokyo District Court's patent division will ultimately decide the case.
Pocketpair has already adapted Palworld in response to the lawsuit. A November 2024 update removed the mechanic allowing players to summon Pals by throwing Pokéball-like Pal Spheres. Earlier, in May 2024, the studio modified the game's gliding system. Pocketpair acknowledged at the time that patches were being forced upon the game due to Nintendo's legal action.
Nintendo has taken aggressive positions throughout the dispute, even rewriting one of its mount-related patents mid-lawsuit while arguing that user-created mods should not count as prior art in patent examinations.
Palworld's launch in early 2024 shattered records. The title arrived simultaneously on Steam for $30, Xbox Game Pass, and PC Game Pass, drawing record-breaking concurrent player numbers. CEO Takuro Mizobe later revealed that the developer struggled to manage the staggering profits the game generated.
Capitalizing on the phenomenon, Pocketpair signed a partnership with Sony to establish Palworld Entertainment, a new entity tasked with expanding the franchise. The game subsequently launched on PlayStation 5.
While some observers drew comparisons between Palworld's creature designs and Pokémon, suggesting imitation, Nintendo chose not to pursue a copyright infringement claim. Instead, the company pursued the patent route, focusing on gameplay mechanics rather than aesthetic similarities.
At the Game Developers Conference in March 2025, Pocketpair communications director John Buckley characterized the patent lawsuit as unexpected, saying it "came as a shock" and was "something that no one even considered." Buckley had previously addressed other controversies surrounding the game, including accusations of using generative AI and allegations of model theft.
Pocketpair continues to develop Palworld ahead of its 1.0 release, navigating both the legal challenges and ongoing community scrutiny.
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