Action-adventure game ‘Palworld’ made a splash earlier this year when it sold over 2 million copies during its early release launch, however, this success was quickly overshadowed by criticism. According to several users, the game bears too much resemblance to Pokémon, the iconic media franchise from Japan. The fact that its unofficial tagline is “Pokémon with guns” only served to fuel the debate further.
It did not take long for the Pokémon Company to address the allegations, with the company stating that they “intend to investigate and take appropriate measures to address any acts that infringe on intellectual property rights related to the Pokémon.”
While the company did not specifically mention Palworld, it alluded to the game by stating that it had received several inquiries regarding “another company’s game released in January 2024.” It further emphasised that it has “not granted any permission for the use of Pokémon intellectual property or assets in the game.”
Palworld’s resemblance to Pokémon may have led to a massive online discourse, but do the claims of intellectual property infringement hold any merit? What would happen if the Pokémon Company decided to pursue legal action against Pocketpair, the game developers behind Palworld?
Understanding Intellectual Property
Intellectual property (IP) refers to creations of the mind and can be anything from a name, creation or idea. When you develop a new product, service, or idea, it belongs to you and is considered your IP.
Several types of intellectual property rights protect different elements of proprietary material. These include patents, trade marks, copyright, registered designs, and more. Thus, understanding how to protect your IP is crucial, as certain forms of IP are registered rights that require a formal application and examination before ownership rights can be claimed. Additionally, it is important to note that IP rights must be sought in each jurisdiction, as registered IP in one country will not always be protected in other countries.
Relating all of this to Palworld, the legal implications are more complex and nuanced. Different jurisdictions have different rules regarding IP, and with the game available in over 100 countries, proving allegations of infringement may prove to be challenging.
Pals vs Pokémon
Users have repeatedly asserted that Palworld’s creatures, known as Pals, are designed very similarly to Pokémon characters. Takuro Mizobe, CEO of Pocketpair, has denied these allegations, asserting that their game has undergone rigorous legal reviews and that no other company has taken any action against Pocketpair. In an interview, Mizobe stated, “We make our games very seriously, and we have absolutely no intention of infringing upon the intellectual property of other companies.”
Unfortunately, the line between inspiration, influence, and infringement is not as clear cut as we would like it to be. When character designs are similar but not identical, the key consideration becomes whether these similarities are “substantial” enough to constitute an infringement on one’s IP. This would then require a side-by-side comparison of the designs in question to evaluate the similarities and differences.
Furthermore, identifying differences between two works does not necessarily preclude the possibility that copying has occurred. However, the burden typically falls on the IP owner to prove that their work has been directly copied.
At the moment, it’s difficult to say that Pokémon has a strong case against Palworld. Neither Nintendo (the video game company that co-owns Pokémon) nor the Pokémon Company have pursued legal action to date. However, it is worth noting that the companies have pursued a copyright strike against a YouTuber who created a “mod” for the video game, which placed actual Pokémon characters into Palworld.
The Takeaway for Startups
Respecting and being aware of intellectual property rights is essential for startups or business owners to avoid legal pitfalls in the future. While it can be tempting to produce something inspired by existing IP, it is a fine line to tread. Stray too far from the original work, and your creation may lose recognisable inspiration; mimic it too closely, and you’ll risk copyright infringement.
It is best to avoid the types of IP assets that are more easily protected, such as character or product designs. However, if there is a possibility of unintentional copyright, it’s imperative to check the following:
- Identify whether the original work is protected by copyright.
- Check whether there are substantial elements copied from the original work.
- What defences are available to you? Can you claim fair use?
IP owners may consider several factors when determining whether or not to pursue legal action against another company for infringement. These include legal basis, cost, and brand reputation. In my experience, while it can be hard to predict whether an IP owner will proceed with an action in infringement, when it comes to large and successful companies who feel threatened by new and up-and-coming businesses that provide similar offerings, there’s no stopping them from going after such businesses hammer and tong.
When in doubt, it’s best for startups to consult with an experienced lawyer to navigate any complex issues that may arise. Intellectual property law is complicated, so it’s advantageous to hire an excellent lawyer or law firm, such as Lazarus Legal, who can walk you through the nuances of intellectual property law and defend you when the need arises.
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