Australian company faces a lawsuit from Pokemon for NFT collection

A legal battle has erupted between Pokemon Company International and Pokemon Pty Ltd over trademark infringement by the Australian company for its NFT collection game, which is based on the original version.

Kotiota Studios recently launched a play-to-earn game that is said to be inspired by its own franchise.

The Pokemon Company has argued that the Australian company cannot use the word Pokemon in its game and branding of the game as it could confuse customers. The company has sought damages and an injunction regarding the usage of the said word. The company has additionally sought the destruction of any material that is related to the NFT game. Kotiota Studios will very likely have to remove the advertising and promotional material for all the platforms.

Pokeworld is a virtual game that is powered by the NFT mechanism, allowing players to trade creatures. The same is not the case with the original version. The Pokemon Company and Nintendo have never announced plans to back their game with non-fungible tokens.

Kotiota Studios is currently attempting to tap into the sphere of NFT gaming. This comes after the gaming segment, and NFT segment joined hands for mutual growth in the times to come. When integrated, the virtual world gives players the freedom to own and trade virtual assets with other players. They have the option to retain the NFT as well.

The lawsuit demonstrates that there is an urgent need to protect intellectual property as the NFT business grows.

All eyes are on the case’s development. It does serve as a reminder to others in the industry that their branding and marketing methods require caution.

Pokemon continues to generate buzz despite the lawsuit. The official website has yet to confirm if it will have NFTs in the final launch. Until then, it continues to boast that the game will be powered by NFT, allowing players to buy and sell virtual creatures.

The decision to file a lawsuit was made public in recent days after the Australian company announced it was gearing up for the launch of its NFT game. The Japanese animated series is worth billions. Creating and launching PokeWorld poses a serious threat to the original version of the game.

According to Pokemon Pty, it has worked with the international company on several projects, including Pokemon Violet, Pokemon Scarlet, and Pokemon Home. There is an unreleased project titled Pokemon Sleep.

Despite the existence of the website, a request to remove the content is issued. The Pokemon Company has petitioned the federal court to prevent the Australian company from infringing on its trademark.

If the Pokemon Company prevails in court; the game would not be released because Kotiota Studios would be prevented from taking the necessary steps by the law. On December 21, 2022, the initial hearing was held, although no studio representatives were present.