Valve Reflects On Lawsuit That Could Have Killed The Company

As a long-time fan and follower of the gaming industry, I can’t help but feel a profound sense of admiration for the unsung hero who saved Valve from certain doom – a man known only as Andrew. This summer intern, who likely spent countless hours poring over millions of pages of Korean emails, found the proverbial smoking gun that ultimately sealed Vivendi’s fate.


This week marks the 20th anniversary of Half-Life 2, one of Valve’s most iconic first-person shooter games and widely considered among the genre’s best. In honor of this milestone, Valve has released a documentary detailing the game’s creation, shedding light on how Valve’s future was at risk due to a lawsuit from their previous publisher, Vivendi.

From a dedicated fan’s perspective, I unravel a captivating tale as revealed by PC Gamer and 80 Level. This story is subtly woven into the backdrop of Half-Life 2’s development, unfolding about an hour into the documentary and continuing for another 43 minutes. At the core of this legal battle was Valve’s claim that Vivendi was distributing Counter-Strike to South Korean cyber cafes without the explicit consent of Valve itself.

In response to Valve’s lawsuit defending its rights, Vivendi countered with numerous legal challenges against both Valve and key figures like COO Scott Lynch and co-founder Gabe Newell. This protracted legal battle significantly depleted Valve’s resources to the point of potential bankruptcy. In fact, Gabe Newell himself was on the brink of personal bankruptcy and was forced to put his home up for sale in order to continue the fight.

A contract with another publisher provided Valve some essential time to regroup. However, the pivotal moment in the case occurred when Vivendi disclosed millions of pages of emails during the discovery process, which were all in Korean. Interestingly, Valve had a summer intern, named Andrew (a native Korean speaker), who uncovered crucial evidence in those messages. In one conversation between two of Vivendi’s vice presidents, one mentioned that he had “disposed of those Valve documents as you requested.

In his recollection, Karl Quackenbush, Valve Corporation’s legal head, shared that he had handled numerous lawsuits for a considerable period. He had never encountered anything quite like it. There might have been instances of document destruction, but those were discussed openly in writing. He had never experienced such a situation before. At this juncture, Judge Zilly declared, “All facts are now to be determined by Valve. You no longer have the right to contest any of these facts. We’re now only discussing the settlement, the amount you owe, and the damages.

Through a court settlement in that legal dispute, Valve regained its intellectual property from Vivendi and solidified its role as both a publisher and distributor via Steam, thus securing a prosperous future. It is plausible that this thriving period may not have materialized without Andrew’s involvement. Yet, the documentary fails to disclose whether Andrew was given an opportunity to work at Valve, which would have been a just recognition for his role in saving the company.

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2024-11-20 16:39