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The Pokémon League is an organization within the fictional Pokémon World whose feature members are the Elite Four and which is led by the Elite Four Champion. These people are chosen to represent the strongest Pokémon Trainers in the Pokémon World.
They coordinate all the Pokémon Gyms since all of them must be approved by the League to be able to function officially. They also take care of other things such as stopping Team Rocket's plans in Lake of Rage, going to "train" in the mountains to hide from the TV reporters, and taking on challengers.
Pokémon Trainers who have beat all the eight regional gym leaders are allowed to go into the Pokémon League and fight the Elite Four. If they win, they earn the merit of being the champion (with no obligation to take the Pokémon League Champion's position; they can always continue training) and their pokémon are recorded in the elite Pokémon Hall of Fame.
The Pokémon League also organizes the Pokémon Stadium Tournaments and the Pokémon League Conventions (which Ash Ketchum goes to in the Pokémon Anime). In these, many Pokémon Trainers come and battle one another in preliminary rounds until, finally, there is only one winner who is awarded the cup.