It appears that the investigation from The Pokemon Company has led to the decision of indeed filing a lawsuit against Pocketpair Inc, claiming that Palworld infringes on "multiple patent rights". Nintendo is seeking an injunction and compensation for damages.
Nintendo Co., Ltd. (HQ: Kyoto, Minami-ku, Japan; Representative Director and President: Shuntaro Furukawa, "Nintendo" hereafter), together with The Pokémon Company, filed a patent infringement lawsuit in the Tokyo District Court against Pocketpair, Inc. (HQ: 2-10-2 Higashigotanda, Shinagawa-ku, Tokyo, "Defendant" hereafter) on September 18, 2024.
This lawsuit seeks an injunction against infringement and compensation for damages on the grounds that Palworld, a game developed and released by the Defendant, infringes multiple patent rights.
Nintendo will continue to take necessary actions against any infringement of its intellectual property rights including the Nintendo brand itself, to protect the intellectual properties it has worked hard to establish over the years.
After reaching more than 20 million sales on Steam, Pocketpair and Xbox had partnered up to assist with development on Palworld's features and updates. They had also partnered with Sony Japan and Aniplex for merchandizing and music relating to Palworld.
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