Valve and Vivendi today announced the settlement of a pending federal court lawsuit filed by Valve in August 2002. The parties have resolved their differences, and the settlement provides for the dismissal of all claims and counterclaims. VUG will cease distribution of retail packaged versions of Valve's games, including Half-Life, Half-Life 2, Counter-Strike, Counter-Strike: Condition Zero and Counter-Strike: Source, effective August 31, 2005, and notify distributors and cyber cafes that were licensed by VUG that only Valve is authorized to distribute Valve games to cyber cafés and grant cyber café licenses. All previous license agreements made by Vivendi are being terminated. Needless to say, settlement or not, this is a huge win for Valve.