Pocketpair goes on to say that Palworld has been claimed to infringe on three patents held by Nintendo and The Pokemon Company and that part of the damage is required as compensation.
The first patent is one that most had guessed to be part of the case, as 7545191 refers to the process of capturing and befriending Pokemon, which Palworld apes with its Pal Spheres. The other two patents that are included in the lawsuit, 7493117 and 7528390 haven’t been found and detailed just yet, but they’re likely also mechanics in Pokemon games that are replicated in Palworld.
To be fair, they’re both Japanese companies, but yeah, Japan’s patent/trademark/copyright laws, or at least the way they’re enforced, make America’s look like China’s. It’s a big part of how Nintendo can be the copyright bullies they are: they’ll do this, file suit in Japan, and steamroll anyone who dares oppose them in court. Because both companies in this case are Japanese, though, all the Japan vs foreigner stuff doesn’t really apply here.
And as a foreigner who lived in Japan in the past, I will say there’s some truth to the above, but it’s a bit exaggerated. Due to that homogeneity, 90+ percent of any racism anyone might experience there is due to stereotypes, not hostility or hatred. It’s still wrong, but more due to ignorance. That is, unless you’re Chinese or Korean. Japan, China and Korea HATE each other (each one hates the other two) for many historical reasons, and while the hostility isn’t as overt nowadays, it still simmers just under the surface. The US is basically forcing Japan and South Korea to play nice and be “allies” so that China and North Korea don’t run them both over. Otherwise, they would all be at each other’s throats.