Palworld has been in development for years which Nintendo was aware of, and could have done something about, the whole time. Both Nintendo and the company that develops and released Palworld are headquartered in Japan which doesn’t really have a concept of fair use so it wouldn’t exactly be a hard case for them if Palworld did infringe their IP. The mod OTOH was out for one day and Nintendo hit them with a cease and desist notice because it very clearly did infringe their IP and the mod was locked behind a paywall which makes it all the more egregious and therefore easy to get it taken down. Nintendo has a well deserved reputation as being sue happy when it comes to their IP being used in a way they don’t approve of. If Nintendo thought for even a milisecond that Palworld infringed their copyrights, theyd have taken them to court a very long time ago. But the internet, being full of armchair legal experts, thinks they know copyright law better than Nintendo’s cadre of lawyers. Its one of the most clear cut cases of the dunning krueger effect in a while.