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- Image from Palworld, courtesy of PocketPair

Palworld vs. Pokémon: Dawn of the Lawsuit

Originally posted on Total Apex Gaming | By David Gilbert | Last updated Aug 17, 2025 12:12 PM ET

Palworld has achieved viral popularity, earning its “Pokémon with guns” reputation through its core mechanics of capturing, collecting, and training creatures. Furthermore, developer Pocketpair actively pursued expanding this IP beyond the initial game release. Specifically, the company and Sony secured a significant partnership that focused on merchandise and anime production. That said, could this strategic move represent a deliberate effort to replicate the multi-faceted approach that originally fueled Pokemania?

From Guns to Cardboard: Palworld’s Wild Ride

As Pocketpair seemingly continues this expansion strategy, its sights are now firmly set on the domain of physical collectible card games. Consequently, Pockerpair is working with ACOS, a subsidiary of the Animate corporation, which has recently acquired substantial blocks of shares in Bushiroad. According to industry observers, Gamebiz covered and Automaton translated this development via a legal notice. Bushiroad’s CEO and president, Takaaki Kidani, was explicitly exposed by the document that he personally sold a significant portion of his own holdings.

The details surrounding how Pocketpair and ACOS divided these shares between them have yet to be disclosed. According to reports, Kidani relinquished four million out of his seven million directly owned shares. As a result, the CEO reduced his total stake in Bushiroad from 55.9% to 49.9%. Naturally, imminent product collaborations, such as a Palworld Trading Card Game, aren’t automatically confirmed from purchasing shares in another company. However, market analysts haven’t completely abandoned this investment, finding it particularly noteworthy due to timing and Pocketpair’s declared ambitions.

Palworld‘s Next Evolution: Gotta Sue ‘Em All

Image of Palworld Tides of Terraria, courtesy of Pocketpair.

Furthermore, Palworld Entertainment was formerly established by Pocketpair the previous year. Specifically, this new venture became a dedicated division that was tasked with transforming Palworld into a multimedia franchise. With this new entity, “merchandising activities” are explicitly prioritized, which directly mirrors the proven business model famously perfected by the Pokémon franchise. Given his substantial investment in a major card game publisher like Bushiroad, known for titles such as Cardfight!! Vanguard and Weiss Schwarz, did Pocketpair reach its next logical step in executing that multimedia plan?

Simultaneously, Palworld‘s future may be overshadowed by this significant legal challenge from Nintendo and The Pokémon Company, initiating a major lawsuit against Pocketpair. This allegation accuses the game of infringing upon “multiple patent rights” associated with their long-established creature-collecting series. Consequently, Pocketpair was shocked by the lawsuit, publicly expressing surprise at these allegations. So far, the outcome of this complex intellectual property dispute remains highly uncertain. Not only that, but could the game’s ability to fully realize its multi-media aspirations, including any potential ventures into physical card games, be impacted? For observers, the legal proceedings may unfold over many months, if not years.

PocketPair’s Big Bet Faces Nintendo’s Big Brief

Pocketpair’s aggressive strategy to Palworld‘s success emulates Pokémon’s path to cultural dominance. Due to the company’s approach, the game has not only been successful in video games but also anime, merchandise, and potentially collectible cards. Although the Bushiroad share acquisition represents a tangible step towards enabling that broader franchise vision, Nintendo and The Pokémon Company’s formidable legal challenge introduces substantial risk and uncertainty.

Ultimately, this high-stakes lawsuit could potentially influence Pocketpair’s partnership decisions and product roadmap. As Palworld continues to build its entertainment ecosystem, can it successfully navigate this legal hurdle? Currently, the developer seeks to capture a significant portion of the lucrative market pioneered by Pokémon. However, complex corporate maneuvers and unresolved legal battles present challenges that Pocketpair must overcome to bring its vision to life despite intense industry scrutiny.

This article first appeared on Total Apex Gaming and was syndicated with permission.

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