Also grabbed quotes from the MC thread, where I also posted this.
If it's just about the virtual joystick for character movement which is commonly used in smartphone games these days then it's probably something that does need to be tested in court since the sides are probably arguing over how the virtual joystick patent was provided and used. (stylus/thumb tool/thumb, handheld versus smartphone, visibility of button etc)
Assuming that the case succeeds, Nintendo could use it as precedent from other developers to license the patent for royalties or cross-patent or cross-development agreements. e.g. Azur Lane (Yostar), Lineage II (netmarble), Honor of Kings/Arena of Valour (Tencent, though maybe the Switch port deal might have included the license)
Regardless, Nintendo do have lots of other up and coming mobile developers to choose from. I think it's just that any negotiations with colopl on any of that kind have broken down. Maybe Akatsuki or klab have openings...