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The United States Patent and Trademark Office has issued a nonfinal decision rejecting all 26 claims in US Patent No. 12,403,397 — Nintendo’s patent covering Pokémon battling mechanics known as “summon character and let it fight.” The ‘397 patent sits at the centre of Nintendo’s ongoing lawsuit against Palworld developer Pocketpair. The ruling was directed by USPTO Director John A. Squires.
PC Gamer reported the USPTO decision on 1 April 2026. The ruling is explicitly nonfinal — Nintendo has the right to respond, and the process is far from concluded — but a preliminary decision to reject all 26 patent claims is a meaningful development in a lawsuit that the wider gaming community has been watching closely.
What the Patent Covers
Nintendo holds multiple patents related to Pokémon game mechanics. US Patent No. 12,403,397 — commonly referred to as the ‘397 patent — covers the “summon character and let it fight” mechanic: specifically the way creatures engage in combat under player direction, a system central to the Pokémon franchise for nearly three decades. Nintendo filed these patents in response to the commercial success of Palworld, which launched into early access in January 2024 and became one of the fastest-selling games in Steam history, reaching over 25 million players within weeks.
The Nintendo vs. Pocketpair Lawsuit
Nintendo filed suit against Pocketpair in September 2024, alleging patent infringement related to game mechanics in Palworld. Nintendo was seeking damages and, depending on the outcome, potentially injunctive relief that could affect Palworld‘s continued operation.
The patents cited in the lawsuit were a point of contention from the moment they were made public — some patent claims were characterised by legal observers as broad enough to potentially cover mechanics common across the genre, not only Pokémon-specific implementations.
The USPTO’s Nonfinal Decision
USPTO Director John A. Squires directed the reexamination of the ‘397 patent, a rare step for a director to take personally. The USPTO’s nonfinal decision rejects all 26 claims in the patent — meaning no part of the patent’s scope was upheld in the preliminary review. This follows a similar preliminary rejection from the Japan Patent Office in November 2025, which also found problems with the patent application.
The term “nonfinal” is specific: it is the USPTO’s preliminary finding after reviewing a challenge to the patent, and Nintendo has an opportunity to argue against the revocation before the ruling is finalised.
If the revocation is upheld through the final decision process, it removes at least one of the legal foundations Nintendo is relying on in its case against Pocketpair. Nintendo can still proceed with claims based on other patents.
This is a significant moment for Pocketpair, but it is not a win — not yet. The legal process will continue for some time.
Why This Matters for SEA Players
Palworld has a substantial player base across Southeast Asia. The game’s survival-crafting loop, its accessibility on PC via Steam, and its early access pricing made it one of the most-played new games in the region in 2024. A lawsuit that could affect the game’s development roadmap, multiplayer stability, or continued availability is directly relevant to those players.
The broader principle also matters. Nintendo has been increasingly aggressive in protecting its intellectual property through legal channels. A USPTO ruling that challenges the scope of a Nintendo patent, even in preliminary form — and the parallel JPO rejection from November 2025 — collectively push back against the idea that the holder of long-established IP can claim exclusive ownership of mechanic categories.
Nintendo has plenty of runway to contest this ruling. But the patent office’s initial finding rejecting all 26 claims, combined with the JPO’s parallel rejection, is not something that can be dismissed.
