this post was submitted on 20 Jul 2023
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Correct. Valve could have let them release it and let Nintendo go through the DMCA process. As long as Valve follows the process, they would not be the subject of any litigation.
They decided to break the process.
In terms of user content this would be correct. However when it comes to games on the platform valve does do curation to ensure games run etc. I don't know if it has been tested, but that curation could exclude them from the protection. If that was the case they could be directly sued for copyright infringement.