Valve prevails in lawsuit against Rothschild for patent infringement and violation of anti-patent troll law

Valve Corporation has won its 2023 lawsuit against Leigh Rothschild and several associated companies, including Rothschild Broadcast Distribution Systems LLC, Display Technologies LLC, Patent Asset Management LLC, Meyler Legal LLC, and Samuel Meyler. The court ruled in favor of Valve on all counts, including breach of contract and violations of Washington State’s Patent Troll Prevention and Consumer Protection Acts. The legal dispute centered on US patent 8856221B2, which Valve had previously obtained a perpetual, royalty-free, worldwide license for in 2016. Despite this, Rothschild’s companies filed multiple infringement claims against Valve in 2022 and 2023. Valve responded by filing its own lawsuit, arguing that Rothschild and his companies acted in bad faith and violated the licensing agreement. The court found that Rothschild and the companies involved had no valid excuse for repudiating their obligations and held them accountable under the state’s anti-patent troll legislation. By treating Rothschild’s entities as his “alter egos,” Valve made him personally liable, setting a precedent for combating patent trolling. The outcome is seen as a victory for tech companies facing similar litigation and could inspire further cases under Washington’s Patent Troll Prevention Act.