Valve awarded $152,000 after jury finds breach of 2016 patent licence agreement

Jury sides with Valve in dispute over alleged breach of 2016 patent portfolio deal

Valve Corporation has been awarded around $152,000 in damages after a federal jury in Seattle found that inventor Leigh Rothschild and associated entities breached a 2016 patent licensing agreement with the company.

In 2016, Valve signed a settlement granting it a perpetual, royalty-free licence to Rothschild’s patent portfolio. The agreement was intended to resolve ongoing disputes and prevent further litigation.

However, in 2022, one of Rothschild’s companies filed a lawsuit against Valve concerning technology linked to Steam. In 2023, lawyers representing Rothschild sent another claim relating to US Patent No. 8,856,221, despite the earlier settlement.

Valve responded by filing suit, arguing that Rothschild and affiliated entities had acted in bad faith and violated the 2016 agreement.

On February 17 2026, the jury ruled in Valve’s favour on key issues. Jurors found that Rothschild and related entities had breached the licensing deal and violated Washington’s Patent Troll Prevention Act as well as the state’s Consumer Protection Act.

The court also permitted Valve to pursue Rothschild personally after accepting arguments that certain entities functioned as his “alter egos”, allowing the case to extend beyond corporate structures often used in patent disputes.

During proceedings in late 2025, Rothschild’s legal team submitted a motion containing 13 fabricated legal citations.

The court determined that the filing relied on generative AI without proper verification. Sanctions were imposed, and the defence apologised before the trial.

Valve continues to face other legal challenges. In the United Kingdom, a tribunal has allowed a £900 million class action to proceed, alleging that Steam inflated prices for around 14 million users through its commission structure and pricing rules.