However Pokemon came out in 96, that’s 28 years. There’s been very little innovation in their games since.
First, not really, there’s been a LOT of innovation in Pokémon, as much as people want to deny it.
And second, 28 years is really not that much. We’re not in the Disney realm of copyright-hogging, I think 50 years is a fair amount of time. The issue is that it’s often way too broad: it should protect only extremely blatant copies (i.e. the guy who literally rereleased Pokémon Yellow as a mobile game), not concepts or general mechanics. Palworld has a completely different gameplay from any Pokémon game so far, and (most of) the creatures are distinct enough. That should suffice to make it rightfully exist (maybe removing the 4/5 Pals that are absolute ripoffs, sure).
If we’re talking PvP, battling has constantly evolved through new abilities, even without gimmicks the way the game is played changed a lot through the years.
In single player they also changed a lot of stuff since gen 4, although the positive changes were mostly in gen 5/6 and the later ones like wild areas and the switch to “””open world””” were… not as well received.