It only took Palworld reaching 2 million in peak concurrent players for The Pokémon Company to listen to the collective call of the internet.
Nearly a week after Palworld came out, one-third of the ownership group of the Pokémon brand has released an official statement addressing the controversy surrounding Palworld, which has has drawn significant attention for its creature designs that many believe bear a striking resemblance to Pokémon.
Easily the hottest indie title ever, Palworld quickly became the fascination of the internet and of intense debate, with its critics accusing it of infringing on the intellectual property rights of The Pokémon Company.

In a post published on its Japanese website, The Pokémon Company acknowledged the surge of inquiries regarding Palworld. In its statement, the company emphasizes that no permission was granted for the use of Pokémon intellectual property in Palworld. The Pokémon Company has announced its intention to investigate and take measures against any acts that infringe on its intellectual property rights. This move indicates a potential legal confrontation between the two entities, with significant implications if proven that Pocketpair infringed on The Pokémon Company’s IP.
While this was pretty much guaranteed in the lead up to Palworld’s release and most, especially after its historical and unprecedented success, Pocketpair, the developer of Palworld, has maintained that the game was carefully developed to avoid copyright infringement. CEO Takuro Mizobe has stated that Palworld underwent legal reviews and that it has no intention of infringing upon the intellectual property of other companies. Despite these assurances, the game’s success and the similarities to Pokémon have drawn the attention of The Pokémon Company.
Palworld has been a commercial success, selling over eight million copies in less than a week. And, while the loudest comparisons are with Pokémon, most players believe the gameplay and environments have more in common with Ark: Survival Evolved and Valheim.
Nevertheless, the online community remains divided, with some defending Palworld under Parody Law, which protects media that imitates other projects in a comedic fashion. Meanwhile, others argue that the similarities are too close to be considered anything but a direct copy.
The Pokémon Company’s investigation could have far-reaching consequences. If legal action is pursued and it proves successful, it could set a precedent for how closely new games can mirror established franchises without infringing on intellectual property rights. This situation also raises questions about the use of AI in game development, particularly in creating character designs that may unintentionally mimic existing properties.
In a hypothetical scenario if things go to court, the Pokémon Company’s lawsuit would likely center around the overly similar character designs between both games. Pocket Pair could argue that generic concepts and designs, which most Pokémon have, aren’t copyrightable, as is the “look and feel” of certain games. Another potential defense is for Pocket Pair to argue that it’s protected under fair use. Unfortunately, the courts could rule against it in this scenario given the lack of exaggerated elements in Palworld. Besides, doing so would be a blatant admission that Palworld is heavily inspired by Pokémon.
Ultimately, the situation with Palworld is complex, involving nuances of intellectual property law as well as the evolving nature of game design and development. As the investigation unfolds, it will be interesting to see how The Pokémon Company navigates these waters and what impact this will have on the gaming industry as a whole.
With Palworld’s popularity and the iconic status of Pokémon, the outcome of this investigation could influence future game development and the protection of intellectual property in the digital age.