Nintendo’s Palworld Patent Rejected by Japan Office on July 18

Japan’s Patent Office issued a formal rejection of Nintendo’s touchscreen-based monster-catching patent application on July 18, dealing another blow to the company’s legal strategy against Palworld. The examiner ruled the mechanics lacked an inventive step, citing prior art including a 2013 fan-made Pokemon game called Pokemon Generations. Nintendo argued the fan project should not count as evidence because it infringed Pokemon copyrights, but the examiner rejected that defense. The patent was part of a family of claims being used against Palworld in ongoing litigation.

How the 2013 fan game became evidence

The Japan Patent Office cited gameplay footage from Pokemon Generations, a June 2013 YouTube video created by indie developers. The video demonstrated 3D movement, real-time creature capture, and combat mechanics more than eight years before Nintendo filed its patent application in December 2021. Nintendo and Pokemon Company argued in their response that the video should be excluded because it infringed Pokemon copyrights. The examiner rejected this claim, ruling that copyright status does not affect whether publicly available footage demonstrates existing mechanics.

Nintendo’s legal arguments failed to persuade the examiner

Nintendo submitted an opinion letter challenging the examiner’s prior art citations, focusing on the Pokemon Generations video. The company claimed the footage was merely infringing content and that describing it using Pokemon character names was inappropriate. Nintendo also argued that gameplay video alone cannot prove an actual, operable game program. The examiner dismissed both points, stating that copyright concerns are separate from patent novelty analysis and that the video adequately demonstrated the mechanics in question.

What happens next for Nintendo

Nintendo has three options within three months: appeal the decision to a JPO administrative panel, file a revised divisional application with narrower claims, or abandon the patent effort. According to Games Fray, the examiner’s language suggests the standard examination process is complete. Earlier reports indicated Palworld 1.0 already broke free of Nintendo’s patent restrictions, meaning the company’s latest filings targeted only older game versions. With Meyka grading Nintendo (7974.T) a B+ and forecasting the stock at 11,482 yen within one year, the patent setback adds legal uncertainty to a company already facing headwinds from a 31.5% year-to-date decline.

The broader pattern of Nintendo’s patent losses

This rejection marks another setback in Nintendo’s patent campaign against Palworld. The company has already lost several critical patents in both US and Japanese courts. Patent analyst Florian Mueller noted the examiner is now finished with standard review, leaving Nintendo with limited options to strengthen its case. The cumulative effect suggests Palworld will likely operate without significant legal impediment going forward.

Final Thoughts

Nintendo’s patent rejection in Japan further weakens its legal case against Palworld. With the examiner ruling that touchscreen creature-catching mechanics lack novelty, Nintendo faces a choice between costly appeals or accepting defeat. The stock’s B+ rating and forward forecast of 11,482 yen suggest investors see value despite litigation losses.

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