The Patent System: A Quid Pro Quo?

Valve v. Rothschild

Valve Corporation v. Leigh Rothschild (including several of his associated entities and his legal counsel) recently went to trial in Washington, U.S.A., resulting in a decisive victory for Valve. Valve, the owner of the Steam PC gaming platform, took a robust stance against allegations of patent infringement. Rather than simply defending the technical merits, Valve pursued a counterclaim, alleging a breach of a prior licensing agreement. While many companies opt for the certainty of a settlement when faced with litigation, Valve successfully argued breach of contract and invoked Washington's Patent Troll Prevention Act (PTPA). Notably, the court allowed the "piercing of the corporate veil", holding the inventor personally liable, a significant and relatively rare outcome in intellectual property litigation.