Valve Wins Jury Verdict Against Patent Troll in Seattle Court

Image via Canva/Valve

Valve Corporation has won a federal jury verdict against patent holder Leigh Rothschild, ending a legal battle that started years ago over an alleged breach of a licensing agreement.

The dispute dates back to 2016, when Valve did what most companies typically do when faced with a persistent patent claimant. They settled. Valve and Rothschild signed a Global Settlement and License Agreement, which granted Valve a perpetual, irrevocable, royalty-free license to Rothschild's entire patent portfolio.

For six years, that agreement held. Then in 2022, things started to unravel. Rothschild's companies began sending marketing emails to Valve's legal team, hinting that new patents were available and asking if Valve wanted to buy a fresh license.

Valve, fully aware that the 2016 deal already covered everything, ignored the emails. Rothschild responded by filing a lawsuit through one of his shell companies, Display Technologies, claiming that the Steam Deck and Steam platform infringed on a patent related to "displaying content."

Valve's lawyers pointed directly to the 2016 contract that covered this very patent. The case was eventually dismissed with prejudice, meaning that specific claim cannot be brought again.

But Valve was not satisfied with just a dismissal. Instead of walking away, they decided to go on offense. Valve sued Rothschild in 2023 under Washington's Patent Troll Prevention Act, arguing that Rothschild and his entities had acted in bad faith and breached the original agreement.

Notably, Valve chose to sue Rothschild personally, not just his shell companies. This was a calculated move. Most patent trolls shield their personal wealth by operating through dozens of tiny LLCs with no real assets. If one LLC loses, it simply folds, and the individual behind it walks away untouched. Valve's legal team knew this playbook well and went directly after the man himself.

On February 17, 2026, a federal jury in Seattle sided with Valve on every major point. The jury found that Rothschild and his associated entities violated Washington's Patent Troll Prevention Act and the Consumer Protection Act. They also agreed that the 2016 licensing agreement had been breached.

The damages awarded amounted to around $152,000, which might appear minor compared to Valve's legal expenses. However, the significance lies in the precedent set by this verdict. This case is one of the few instances where Washington's anti-patent troll law was fully tested in a jury trial, resulting in a clear and decisive victory for the defending company.

Valve's legal calendar is not entirely clear, though. In the UK, a tribunal has allowed a 900 million pound class action to move forward against the company, with accusations that Steam inflated prices for around 14 million users through its 30% commission structure and pricing rules. That battle is still ahead.