UK Rights Group Sues Valve Over Unlicensed Music Distribution on Steam

Valve is facing a new legal challenge in the UK, as the Performing Right Society (PRS) has initiated legal action against the company. PRS, a rights management organization responsible for collecting royalties on behalf of musicians, claims Valve is distributing its members' music through games and soundtracks on Steam without obtaining the necessary licenses.

According to PRS, many games available on the Steam platform feature music created by its members. They assert that by making these musical works accessible to the public via streaming or download, Valve is effectively "communicating these works to the public without a license."

Dan Gopal, Chief Commercial Officer at PRS for Music, stated, "Our members create music that enhances experiences and PRS exists to protect the value of their work with integrity, transparency, and fairness. 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 videogames rely on great soundtracks, and the songwriters and creators behind them deserve to have their contribution recognised and fairly valued."

PRS clarified that the lawsuit pertains to any music, whether within games or as standalone soundtracks, that Valve has not separately licensed for distribution. For example, while a game developer like Rockstar might have secured licenses to use PRS members' music within Grand Theft Auto titles, PRS argues these licenses do not cover the separate act of Valve making the game, which contains the music, available online.

A PRS spokesperson explained that copyright law grants rights holders control over various acts, including "making available online." They noted that permission from rights holders, typically via a license, is required for such uses. PRS represents songwriters, composers, and music publishers, licensing these uses of their musical works. In this specific case, the unauthorized act is the making available of the music online. Even if the composer or publisher cleared rights for the music to be used by the developer in the game, a separate act is performed by the platform operator when the game (or its soundtrack) is made available to consumers for streaming or download. As Valve operates the Steam store and facilitates these downloads and streams, it plays a crucial role in providing public access to that music.

This isn't the first time PRS has pursued aggressive licensing enforcement. Historically, the group has taken legal action in what some perceive as unusual circumstances. In 2007, they sued a Scottish auto repair shop because employees listened to radios at work, claiming it constituted a public performance of music. In 2009, they pursued a woman who played classical music to soothe her horses. The same year, they informed a grocery store employee that singing while stocking shelves required a public performance license, a demand later retracted with an apology due to widespread backlash.

Regarding the timing of this new legal action, PRS stated they have sought the required licenses "for many years without appropriate engagement from Valve." They also highlighted that Valve is currently facing another significant lawsuit in the UK, an approximately $900 million claim for allegedly overcharging gamers and abusing its dominant market position, suggesting a potential strategic timing for the current legal challenge.