The Pokémon Company has officially announced its decision to investigate Palworld for potential infringement on its intellectual property. The move comes after a period of silence on the legal front.

Since its launch on 19th January, Palworld has achieved remarkable success, with sales exceeding seven million units and reaching over two million concurrent players on Steam. However, the game and its developer, Pocketpair, have been embroiled in controversy as allegations surfaced regarding the alleged replication of Pokémon designs and models, coupled with suspicions of potential AI art usage. The ensuing media firestorm has dominated social media discussions.

The Pokémon Company (TPC) acknowledged being aware of Palworld and disclosed receiving numerous inquiries about the game, though the statement did not explicitly name Palworld. Now, TPC is committing to an active investigation into Palworld and Pocketpair for possible breaches of Pokémon intellectual property.

In an official statement, The Pokémon Company stated that they had received numerous inquiries concerning another company's game released in January 2024. They clarified that no permission had been granted for the use of Pokémon intellectual property or assets in that game. The company expressed its intention to investigate and take appropriate measures to address any acts that infringe on intellectual property rights related to Pokémon.

This marks the first instance of TPC publicly addressing Palworld since its launch. It is presumed that TPC's legal team has been closely monitoring Pocketpair, especially following the game’s rapid success. A notable development before the official announcement was Nintendo reportedly issuing a DMCA claim against a mod that introduced Pokémon characters into Palworld on January 23.

Facing mounting criticism, Pocketpair CEO Takuro Mizobe defended the studio and its developers against what he termed as "slanderous comments." He expressed concerns about receiving negative comments and even hinted at potential death threats. Mizobe asserted that all aspects of Palworld's production, including artwork, are supervised by a team, including himself, and he urged critics to refrain from slandering the artists involved.

Details about the investigation are likely to remain confidential until The Pokémon Company decides to take direct legal action against Pocketpair, or if the matter is resolved without formal legal proceedings. The unfolding situation underscores the delicate balance between creative inspiration and intellectual property protection in the gaming industry.