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Nintendo and Pokémon are suing Palworld maker Pocketpair
(www.theverge.com)
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Right, legally speaking that would be covered in the US.
But Japanese law is completely different and IIRC parodies are not covered which is why anime always censors their parody references to other anime. It's stupid, but it's the society that both developers are from.
Only time will tell what they're actually accusing Pocket Pair of doing though.
edit: censors, not sensors. 🤣
Good to know, I had not realized it wasn't covered in Japanese law