Nintendo's legal battle against Palworld may result in a small $30,000 settlement

Nintendo’s patent lawsuit against Palworld dev Pocketpair has been narrowed down so much that IP experts say it’s likely to net the gaming giant just five million JPY (about $30,000 USD) in damages, or even nothing at all.

The details:

• Back in 2024, Nintendo and The Pokémon Company filed a lawsuit against Pocketpair, accusing the studio of infringing on its patents surrounding the use of certain in-game mechanics found in the Pokémon series. Despite the two companies aiming to force sales of Palworld to stop and receive a major payout in damages, Pocketpair stated that it would fight the matter in court.
• As reported by Gamesfray, court records show Nintendo and The Pokémon Company amended their Tokyo District Court complaint in late 2025 so it now targets only older builds of Palworld before Pocketpair altered in-game mechanics and assets to reduce similarities to those found in the patents and paused sales in Japan temporarily.
• GamesFray analyst Florian Mueller argues that, with the changes to the lawsuit, Nintendo has “zero chance of prevailing” against any current or recent build of Palworld (including the 1.0 launch), meaning any injunction would apply only to outdated versions that are no longer being sold.
• Now, if Nintendo and The Pokémon Company win the case, the maximum statutory payout is capped at 5 million yen. The case is also nearing its end, with the Tokyo District Court hearing set for October 1, 2026, with the court ruling in November.