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Well, Palworld developer now have $200 million more than a week ago so now they can afford lawyers as good as the Pokémon company.
It takes weeks until they see any of that Steam money from a game they just released in early access. Though a bank might likely give them a hefty loan now for a proper defense. But let‘s not pretend Japan copyright and trademark laws are lenient or reasonable and Nintendo is basically a national treasure. If Pocketpair was based in any other country it would be different but here we really do not know how it could go.
Imagine thinking steam is their only revenue.
It is actually with how it’s currently locked behind a Microsoft contract
