Valve Sued by PRS for Music Over Unlicensed Music Use in Steam Games

Los Angeles, CA – Valve Corporation, the entertainment software and technology company best known for its digital distribution service Steam, is facing a new legal challenge. The Performing Right Society (PRS), a UK-based collective rights management organisation, has initiated legal proceedings against Valve alleging the unauthorized use of its members’ musical works on the platform. This lawsuit adds to a growing list of legal hurdles for the gaming giant, which is already contending with antitrust claims and accusations of promoting gambling to minors.

The core of the dispute centers around licensing for music used within games available on Steam. PRS contends that Valve has “never obtained a licence for its use of the rights managed by PRS on behalf of its members, comprising songwriters, composers, and music publishers” since the platform’s launch in 2003. This means that despite numerous games incorporating music from PRS-represented artists, Valve has not paid royalties for the public performance of that music through the Steam platform. The organization claims it has attempted to resolve the issue with Valve for “many years” without success, ultimately leading to the current legal action. The lawsuit was filed under the UK’s s20 Copyright, Designs, and Patents Act 1988, requiring any game utilizing PRS’s repertoire to secure a license.

Understanding the UK Music Licensing Landscape

The legal complexities stem from the unique way copyright is managed in the UK, particularly concerning music in video games. Licensing for the initial inclusion of music *within* a game – what’s known as a “sync” license – is typically handled directly between game developers or publishers and music publishers. However, the right to make that music available to the public when a game is downloaded or streamed is a separate right, managed by organizations like PRS for Music. As PRS for Music explains, storefronts like Xbox, Prime Video, Disney+, and Netflix utilize a “General Entertainment Online Licence” to cover this aspect. PRS previously established similar agreements with Sony Computer Entertainment Europe for music used in games and related content downloaded across Europe. Complete Music Update details this distinction, highlighting that Valve has not secured the necessary license for the “making available” right.

High-Profile Games Cited in the Lawsuit

While Valve itself does not publish the games in question, PRS’s statement specifically names several popular titles as examples of those incorporating music from its members. These include the racing game series Forza Horizon, the football simulation franchise FIFA/EA FC, and the open-world action-adventure series Grand Theft Auto. It’s important to note that these games are published by Microsoft, Electronic Arts (EA), and Rockstar Games, respectively, not Valve. The inclusion of these titles serves to illustrate the widespread nature of the alleged infringement on the Steam platform. The lawsuit seeks to compel Valve to obtain a license covering both past and future use of PRS’s repertoire.

A String of Legal Challenges for Valve

This lawsuit represents the latest in a series of legal battles facing Valve. In January 2026, a UK tribunal authorized a collective action lawsuit against Valve totaling £656 million (approximately $901 million as of March 10, 2026) over alleged anti-competitive practices on the Steam platform. IGN reported on the tribunal’s decision, which allows the case to proceed to a full hearing. The claim alleges that Valve abused its dominant position in the PC gaming market to impose unfair terms on developers and consumers.

Adding to these concerns, New York Attorney General Letitia James announced a lawsuit against Valve last month, alleging that loot boxes in popular games like Counter-Strike 2, Team Fortress 2, and Dota 2 illegally encourage minors to gamble. IGN covered the announcement, detailing the allegations that Valve profited from a gambling-like system accessible to underage players.

PRS’s History of Copyright Enforcement

PRS for Music has a history of actively protecting the rights of its members, sometimes drawing public attention in the process. In 2009, the organization gained notoriety for pursuing a woman who played classical music to calm her horses, arguing that she required a public performance license. They also issued a subsequent apology after threatening a shop assistant with a fine for singing while stocking shelves. The Telegraph and BBC News both reported on these incidents, which sparked debate about the scope of copyright enforcement.

The Implications for the Gaming Industry

This lawsuit against Valve could have significant implications for the broader gaming industry. If PRS is successful, it could set a precedent requiring other digital distribution platforms to obtain similar licenses for the music streamed through their services. This could lead to increased costs for platforms and potentially higher prices for consumers. It also highlights the evolving legal landscape surrounding digital music rights and the challenges of applying traditional copyright laws to new technologies and business models. The outcome of this case will likely be closely watched by both the music industry and the gaming community.

Dan Gopal, Chief Commercial Officer at PRS for Music, emphasized the importance of protecting the rights of songwriters and composers. “Our members create music that enhances experiences and PRS exists to protect the value of their work with integrity, transparency, and fairness,” Gopal stated in a press release. “Legal proceedings are not a step we take lightly, but when a business’s actions undermine those principles, we have a duty to act. Great video games rely on great soundtracks, and the songwriters and creators behind them deserve to have their contribution recognised and fairly valued.”

The litigation will proceed unless Valve engages in positive discussions and secures the necessary license to cover the use of PRS’s repertoire, both retroactively and moving forward. As of today, March 10, 2026, Valve has not publicly commented on the lawsuit. The next step in the legal process is expected to be a preliminary hearing date, which has not yet been scheduled. Readers can stay updated on this developing story through official PRS for Music announcements and court filings.

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