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Palworld maker vows to fight Nintendo lawsuit on behalf of fans and indie developers
(www.eurogamer.net)
This is a most excellent place for technology news and articles.
Again, this isn't a copyright lawsuit. Making a game with monsters that look similar to theirs is not what the lawsuit is about. It's about patents. Likely design patents like I mentioned before. If I made a country song with Eminem's lyrics, of course you wouldn't confuse it with Slim's music, but I would need his permission first.
Marshall has copyright on his lyrics, you just said yourself patents and copyright are different things.
Sufficiently different rip-offs that don't confuse consumers as being the original should be legal. They already are as far as copyright is concerned.
Many design patents should never have been registered, and should lose when defended in court. Design trademarks are a third similar issue.