Report on Patent Infringement Lawsuit

As announced on September 19, 2024, The Pokémon Company and Nintendo Co., Ltd. (hereinafter referred to as the "Plaintiffs") have filed a patent infringement lawsuit against us. We have received inquiries from various media outlets regarding the status of the lawsuit, and we would like to report the details and current status of this case as follows:

1: Details of the Lawsuit
The Plaintiffs claim that "Palworld," released by us on January 19, 2024, infringes upon the following three patents held by the Plaintiffs, and are seeking an injunction against the game and compensation for a portion of the damages incurred between the date of registration of the patents and the date of filing of this lawsuit.

2: Target Patents
Patent No. 7545191
[Patent application date: July 30, 2024]
[Patent registration date: August 27, 2024]

Patent No. 7493117
[Patent application date: February 26, 2024]
[Patent registration date: May 22, 2024]

Patent No. 7528390
[Patent application date: March 5, 2024]
[Patent registration date: July 26, 2024]

3: Summary of the Claim
An injunction against Palworld
Payment of 5 million yen plus late payment damages to The Pokémon Company
Payment of 5 million yen plus late payment damages to Nintendo Co., Ltd.

We will continue to assert our position in this case through future legal proceedings.

Please note that we will refrain from responding individually to inquiries regarding this case. If any matters arise that require public notice, we will announce them on our website, etc.