Nintendo’s Legal Crusade in 2025: Palworld, Genki, and the Fight for Control

Nintendo’s Legal Crusade in 2025: Palworld, Genki, and the Fight for Control

Fri May 09 2025

Introduction

In the world of video games, few companies are as protective of their intellectual property as Nintendo. Known for its aggressive legal tactics, Nintendo has a long history of taking down emulators, ROM distributors, fan-made games, and any entities that come too close to its brands. In 2025, the company is making headlines again—not for a new game or console, but for two major lawsuits that could reshape the gaming landscape. One is aimed at Pocketpair, the developer of the breakout title Palworld, while...

Both cases underscore Nintendo’s unrelenting stance on IP protection, and they reflect broader trends in the gaming industry around brand ownership, fair use, and product ecosystem control.

Palworld

Case #1: Nintendo vs. Pocketpair — The Palworld Controversy

What is Palworld?

Launched in early access in 2024, Palworld quickly gained viral attention for what many dubbed “Pokémon with guns.” Developed by the Tokyo-based indie studio Pocketpair, the game blends open-world survival mechanics, base-building, and creature collection. The creatures, known as “Pals,” bear an uncanny resemblance to Pokémon—at least that’s what The Pokémon Company and Nintendo allege.

Despite disclaimers that Palworld was not affiliated with Pokémon, the visual and mechanical similarities stirred controversy. Players could catch Pals in spheres, assign them to factory labor, and even arm them with firearms. For critics, this wasn’t homage—it was infringement.

Legal Timeline

  • January 2024: Palworld launches in early access on Steam and Xbox, instantly trending on Twitch and YouTube.
  • February 2024: The Pokémon Company issues a vague but pointed statement saying it would “investigate titles that may infringe on its intellectual property.”
  • September 2024: Nintendo and The Pokémon Company file a patent infringement lawsuit in the Tokyo District Court.
  • April 2025: Pocketpair announces several game mechanic changes to Palworld, citing legal pressure.

The Claims

Nintendo and The Pokémon Company’s lawsuit targets a number of specific mechanics:

  • The use of throwable “Pal Spheres” for capturing creatures—similar to Poké Balls.
  • The logic system determining whether a thrown object initiates a battle or a capture attempt.
  • The ability to mount creatures for traversal.
  • Character and creature designs that allegedly mirror Pokémon species.

The legal argument centers around patent infringement more than copyright. Patents cover systems and gameplay logic, which are harder to defend but more powerful in court than visual likenesses.

Pocketpair’s Response

Pocketpair initially downplayed the controversy, emphasizing that Palworld was an original IP. But following the lawsuit, the studio made a series of significant changes:

  • The Pal Sphere mechanic was removed and replaced with a more generic trap/capture device.
  • Mounting Pals to glide or travel has been replaced with mechanical gadgets.
  • Several creature designs have been altered to avoid direct visual comparison to Pokémon.

While fans were divided on these updates, many speculated that Pocketpair was preemptively adjusting the game to avoid a prolonged legal battle with Nintendo.

Nintendo Switch 2 Mockup

Case #2: Nintendo vs. Genki — Accessory Ambush at CES

Who Is Genki?

Genki is a hardware accessory company known for creating sleek, high-quality gear for the Nintendo Switch and other portable consoles. Their Bluetooth audio transmitters and dock replacements are popular among gamers who appreciate function and design.

However, in January 2025, Genki found itself in hot water when it allegedly showcased mockups of the unreleased Nintendo Switch 2 at CES—before Nintendo had formally revealed the console.

The CES Incident

At CES 2025, Genki's booth reportedly featured accessories “designed for next-generation Nintendo hardware.” Attendees captured photos of what appeared to be a redesigned dock, Joy-Con-like controllers, and marketing material referencing “Switch 2 readiness.” These materials were swiftly pulled, but not before images went viral.

Two weeks later, Nintendo filed suit.

The Legal Basis

The lawsuit accuses Genki of:

  • Trademark Infringement: For using Nintendo’s brand and console names without authorization.
  • Unfair Competition: By creating the impression of an official affiliation with Nintendo.
  • False Advertising: Suggesting that Genki’s products were compatible with unreleased Nintendo hardware without official specifications.

Nintendo argues that Genki’s CES display could confuse consumers and damage Nintendo’s marketing strategy for its upcoming console.

Genki’s Response

Genki released a public statement in February 2025 acknowledging the lawsuit and claiming that the images shown at CES were “mockups based on public speculation and leaks.” They denied any partnership claims and emphasized their history of working independently from Nintendo.

The company has since retained legal counsel and is working on a response in court. In the meantime, Genki has pulled all promotional material referencing the “Switch 2.”

Nintendo’s Broader Legal Strategy

These lawsuits are not isolated incidents. Nintendo has long pursued a scorched-earth policy toward anything it perceives as a threat to its IP. Over the years, the company has:

  • Sued ROM websites for hosting legacy Nintendo games.
  • Forced takedowns of fan-made games and mods.
  • Sent cease-and-desist letters to YouTubers using Nintendo music.
  • Sued distributors of modded Switch devices.

While critics argue that Nintendo’s stance is heavy-handed, the company maintains that its legal aggression is necessary to protect its creative assets and brand identity.

Industry Reactions

Developers

Indie developers have expressed concern over the scope of Nintendo’s Palworld lawsuit. If Nintendo succeeds in patent-based arguments over gameplay systems, it could set a precedent that makes it harder for small studios to build on genre conventions.

“I’m worried about the chilling effect,” said one developer on X (formerly Twitter). “If creature capture mechanics can be patented, what’s next?”

Accessory Makers

Genki’s situation has drawn attention from third-party accessory makers who rely on quick response to new console rumors. Several hardware firms have begun reevaluating their marketing strategies and NDAs.

“CES is usually a place for bold predictions,” said one accessory brand rep. “But this lawsuit could make everyone more cautious.”

What This Means for Gamers

For players, these lawsuits may have mixed consequences. On one hand, legal pressure has already resulted in gameplay changes to Palworld, which some fans feel diminishes the fun. On the other hand, Nintendo’s vigilance ensures high-quality, consistent branding across its ecosystem.

The Genki case is more peripheral to gamers, but it raises questions about the freedom of third-party companies to innovate around proprietary platforms.

Conclusion

In 2025, Nintendo isn’t just releasing games—it’s fighting in courtrooms. The lawsuits against Pocketpair and Genki show that Nintendo is doubling down on its longstanding policy of brand control and IP defense.

Whether these legal actions result in sweeping changes across the industry or simply serve as cautionary tales, one thing is clear: Nintendo intends to protect its kingdom, with lawyers at the gate.

Want more on lawsuit news? Check out the latest lawsuit involving Genshin Impact!.

GameSoles will continue to follow these stories and report on any major updates or verdicts as they unfold.