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this post was submitted on 23 Jan 2024
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If they simply exported models from a Pokemon game and ported them to Palworld: That's a straight up, cut and dry copyright violation.
If he made them entirely by hand and just are the artist's own rendition of a real Pokemon... I'm not sure. Fanart is usually considered fair use, and it generally seems like that's how most mods are treated... But there is a chance that even a free, handmade Pokemon fan mod could damage sales of the actual Pokemon games if people think Palworld is a better Pokemon game than Pokemon. Based on that, they very well could have a case against it.