Nintendo will continue to take necessary actions against any infringement of its intellectual property rights including the Nintendo brand itself, to protect the intellectual properties it has worked hard to establish over the years.
Making legal hay over even heavy common ground between games can be an uphill battle because copyright law generally doesn't apply to a game's mere design elements.
Palworld might clear the high legal bar for infringement if the game's 3D character models were indeed lifted almost wholesale from actual Pokémon game files.
A lawsuit over patents would seemingly require some unique game mechanic or feature that has been specifically granted stronger protections by the patent office.
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