Its less terrible than you think, Nintendo has been suffering setback after setback in the totality of their legal battle with PalWorld, in both Japan and the US.
Basically... both the US and Japanese versions of the patent battles are having things like... Japan just actually rejects a Nintendo patent as being too vague and non novel... the USPTO does a thing it almost never does and re-reviews a patent it had previously given to Nintendo as possibly being vague bullshit as well... Niintendo just completely rewrites the lawsuit in the middle of pre-trial, while also claiming violations of patents that it filed for after the lawsuit started.
...thats actually largely a bunch of bullshit, that has a decent likelihood of pissing off the judges and arbiters involved as essentially being legal misconduct.