The Pokémon Company Won $15 Million in a Copyright Case

In a landmark ruling, The Pokémon Company has successfully won a $15 million copyright lawsuit against a Chinese company accused of blatantly using Pokémon characters in its mobile game. The lawsuit was centred around Pocket Monster Reissue (also known as Koudaiyaoguai Fuke), a turn-based role-playing game alleged to feature unaltered characters like Ash Ketchum and Pikachu, directly copied from the iconic original Pokémon franchise.

This landmark ruling by the Shenzhen Intermediate People’s Court ordered one of the six companies involved in the lawsuit to pay 107 million yuan (approximately $15.08 million) in damages for copyright infringement. Three of the remaining companies were also held accountable, though they have since filed an appeal.

The Backstory of Pocket Monster Reissue

Launched in 2015, Pocket Monster Reissue became popular, raking in about $43.5 million (300 million yuan) in revenue during its first year, according to a financial report by Zhongnan Heavy Industries, published for that year, reported by The South China Morning Post in 2022. The game was notorious for featuring unaltered artwork, including Pikachu from the Pokémon Yellow Box and other beloved characters like Ash Ketchum, Tepig, Oshawott, and Charmeleon. Gameplay videos showed an uncanny resemblance to the original Pokémon games, with many players seeing it as a blatant rip-off rather than a fan homage.

The Pokémon Company first filed the lawsuit in 2021, accusing the game’s developers of intellectual property theft and copyright infringement. Initially seeking $72 million in damages and demanding that the accused companies issue appologies on popular Chinese websites, social media platforms and app stores, the final court ruling awarded the company $15 million in compensation—a significant win, but still a fraction of the original demand.

A History of Protecting Pokémon's Intellectual Property

The Pokémon Company has long been known for its uncompromising stance on protecting its intellectual property. The company has shut down numerous fan projects over the years, including some that weren’t profiting from their work. In 2016, for instance, the fan-made game Pokémon Uranium was taken down after almost a decade of development, and in 2018, Pokémon Essentials, a tool used by fans to create their own games, met a similar fate.

However, the company’s aggressive legal approach isn’t always aimed at fans. In this case, Pocket Monster Reissue was a commercial product that earned millions of dollars in profits, making it a more clear-cut instance of intellectual property theft. The Pokémon Company’s former Chief Legal Officer stated earlier this year that while the company does not go after fan projects indiscriminately, it takes action when such projects cross a line.

Interestingly, not all games that resemble Pokémon face legal issues. The open-world game Palworld, dubbed “Pokémon With Guns,” drew many comparisons to Pokémon but has so far avoided legal complaints from The Pokémon Company. Despite a statement indicating that the company would investigate any potential copyright violations, no formal lawsuit was filed. Palworld continues to thrive and is rumoured to have a future PlayStation release.

This contrast raises questions about how The Pokémon Company chooses its legal battles. While fan projects and blatant copies like Pocket Monster Reissue have been swiftly shut down, others, like Palworld, seem to slip through the cracks.

The Wider Impact on the Gaming Industry

This ruling is not just a win for The Pokémon Company; it’s also a clear reminder to the entire gaming industry about the importance of respecting intellectual property rights. In the mobile gaming space, where clones and unauthorized game adaptations are common, this case sets a strong precedent. It sends a firm warning to developers that using content from established franchises without proper authorization carries significant legal and financial risks.

Copycat games that replicate the mechanics or characters of popular titles without licensing have long been a contentious issue in gaming. While it may be tempting for smaller developers to ride the coattails of successful franchises, The Pokémon Company’s recent legal victory shows that the consequences of such actions can be severe.

What’s Next for The Pokémon Company?

As The Pokémon Company continues its mission to safeguard its intellectual property, it’s also pushing forward with bold new plans. Recently, the company filed a patent hinting that Pokémon Legends: Z-A, set to release in 2025, will feature exciting innovations like rideable Pokémon, complete with fresh mechanics and animations. This upcoming release promises to inject new energy into the much-loved franchise.

With this win, The Pokémon Company solidifies its role as a vigilant guardian of its brand, ensuring that future generations of fans can continue to enjoy Pokémon in its original, unaltered form. Meanwhile, the $15 million legal victory serves as a clear warning to developers attempting to capitalize on established brands. Protecting intellectual property is more than a legal requirement—it’s essential for fostering creativity and fairness in the industry.