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If Nintendo wins this then Level-5 should sue them.
the case could just be to trample the opposition even if it means throwing money at the issue, or they could get royalties or penalties from pal if they win.
Court cases are rarely determined by what is right and wrong, it's all down to whoever has the most money to drag litigation on for as long as possible before one side decides to cut their losses.
If they have the choice between paying Nintendo $100,000 and changing Pal Spheres to cubes to get around a vague patent, they will take that instead of spending millions on legal fees and dragging out proceedings over several years.
Then again, Corporations gonna Corpo. Might end up being a big nothingburger, or Nintendo is gonna line their pockets further. The game will stay, regardless.