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Palworld maker vows to fight Nintendo lawsuit on behalf of fans and indie developers
(www.eurogamer.net)
This is a most excellent place for technology news and articles.
I think Nintendo's lawyers must have determined it's inspiration in this case though. Like you said, they're suing for patent infringement and not copyright, so they must think a legal challenge on their creature designs is a lost cause.
That's a good point. They want to hurt them however they can.