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The Pokemon Company releases a statement regarding Palworld: Inquiries Regarding Other Companies’ Games
(corporate.pokemon.co.jp)
this post was submitted on 25 Jan 2024
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They can take them to court if they find concrete evidence of asset theft, which is what their PR says.
They can say and imply a lot of BS on a press release that wouldn't fly on a court filling unless they have hard evidence. They can barely write a cease and desist order to the Pokémon mod creators. They can't do anything beyond that.
The only thing that might be a real wrench in the works for the palworld company, is its said their CEO was talking about using AI and that you could feed it just simple things and get a real workable output. But this could mean anything and it may not have been more then a testing time in house. There was a forum post about the artist(s) that were working on rigging the pals that they said they were able to get them working in under 4 hours after getting them from concept artists. (I havent read the topic, it was just talked about by twitch and general artist Julia (cohhcarnage/dansgaming to name a few of her main outputs) she linked it in a dropped frames episode, and I would think she would be more abreast of these art topics then most nerds on the internet.