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Nintendo's legal crusade against Palworld has hit a major roadblock. The U.S. Patent and Trademark Office (USPTO), under director John A. Squires, has ordered a reexamination of Nintendo's infamous "397 patent"—the legal cornerstone of its lawsuit against the "Pokémon with guns" survival game. The patent, which claims ownership of the core mechanic of summoning creatures to fight alongside players, has been deemed controversial by industry observers, and this development could significantly weaken Nintendo's position in the ongoing battle.

The reexamination was triggered by Squires himself, who highlighted two older patent applications from Konami and Nintendo as "prior art" that could invalidate the 397 patent's claims. This rare intervention by the USPTO director signals skepticism about the patent's validity and underscores the growing criticism that Nintendo's intellectual property claims over such a fundamental game mechanic are overly broad. As Florian Mueller of Games Fray notes, while the order doesn't revoke the patent outright, it "can result in a patent being upheld"—though he adds this specific case seems unlikely to end in Nintendo's favor.

The 397 patent has been a lightning rod since Nintendo wielded it against Pocket Pair, the developer of Palworld. Critics argue that patenting a concept as ubiquitous in gaming as creature-summoning stifles innovation and creates a chilling effect for developers. The USPTO's move now opens a two-month window for Nintendo to respond and allows other companies to challenge the patent's merits, potentially leading to its invalidation.

This setback comes as Nintendo faces mounting pressure to defend its IP. The company has a long history of aggressive litigation, but its pursuit of Palworld has drawn particular scrutiny. The reexamination order suggests that even governmental bodies are beginning to question the boundaries of software patents in creative industries. For developers and tech leaders, this case serves as a stark reminder of the tensions between intellectual property protection and the collaborative, iterative nature of software development.

As the USPTO reevaluates the 397 patent, the gaming industry watches closely. The outcome could redefine how fundamental mechanics are protected—or whether they should be at all. Nintendo now faces the prospect of its most potent legal weapon being dismantled, a scenario that could embolden future innovators to push boundaries without fear of patent encumbrance. The battle for Palworld may yet rage on, but Nintendo's grip on the "summoning" mechanic appears to be slipping.

Source: Kotaku