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There is no pardoning that would be relevant. However, they could change the law before the court's verdict. In that case the court needs apply the more lenient version. As far as a I know there is significant push to change the law at the moment.

she has actually said that they will work on repealing the law asap and this will likeli go into effect in 2018.

>does german law allow for pardons

No idea. But in this case it's the government itself that gave the ok for prosecution in the first place (it's a very special law...). It doesn't make sense to first say "go ahead, law enforcement" and then pardon Böhmermann.

I think that's happening too?