While we're still waiting on a proper update in the legal battle between Nintendo and Pocketpair regarding Nintendo suing Pocketpair over Palworld and its alleged infringement on Nintendo patents, we do have an update on some of the patents in question, thanks to Games Fray, who has been reporting in-depth analysis on the case as it develops.
Spotted by Games Fray, the US Patent Office, specifically the director of the United States Patent and Trademark Office (USPTO), John A. Squires, has initiated a re-examination of Nintendo's patent number 12,403,397. You might not recognize that patent by its number, so to give you a refresh, it's the one regarding summoning characters and making them battle, and the one that IP and patent lawyer Kirk Sigmon said "should not have happened, full stop."
The patent being re-examined, especially in this case where Squires has kicked off the re-examination himself, is "rare," according to Games Fray, and this re-examination could result in the patent being revoked. It's possible that the patent is upheld, but with how uncommon this step is from the USPTO, that could already be a sign of trouble for Nintendo.
As Games Fray speculates, it could be that the public attention this case is getting has helped move it up the priority docket, with Squires examining it more closely to initiate the re-examination in the first place, but for now, we'll have to see if the re-examination bears any fruit.
Regardless, the fact that the USPTO is looking even more closely at Nintendo's patents likely spells more trouble for Nintendo's case against Pocketpair. It was already trying tactics that Games Fray described as a "hail mary." This case is far from over; there's still a lot that needs to play out, but more and more it is looking like Palworld maker Pocketpair will be able to come out the other side of this with a win.
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