Why Dell and HP Disabled HEVC Support: Licensing Fees, Royalties, and the Future of Video Codecs

Video compression is invisible—until it stops working. For years, high-resolution streaming relied on seamless technology without users questioning the underlying systems. But when companies like Dell and HP disable support for modern codecs such as HEVC/H.265, the illusion of effortless functionality collapses.

For some customers, this shift has already arrived. Dell and HP recently removed HEVC support from select PCs, leaving users and industry observers to ask: Why disable a feature already embedded in third-party hardware? What costs do OEMs and chipmakers incur to support HEVC—and are patent holders charging overlapping licensing fees?

Why Dell and HP Removed HEVC Support

In select models, Dell and HP disabled HEVC/H.265 hardware acceleration, a feature previously enabled in their CPUs. This decision followed years of industry tension over HEVC licensing terms, which many vendors argue are overly complex and expensive.

Industry analysts suggest the move reflects broader frustrations with HEVC’s patent licensing structure. Unlike earlier codecs such as H.264, HEVC’s licensing involves multiple patent pools, each with distinct fee structures. OEMs must navigate these pools to legally implement HEVC, often paying royalties to multiple entities for the same technology.

What Are HEVC Licensing Fees?

HEVC (High Efficiency Video Coding), also known as H.265, is a video compression standard developed by the Joint Collaborative Team on Video Coding (JCT-VC), a partnership between the ITU-T Video Coding Experts Group (VCEG) and the ISO/IEC Moving Picture Experts Group (MPEG).

Unlike H.264, which had a single dominant patent pool managed by MPEG LA, HEVC involves three major patent pools:

• MPEG LA: Manages the largest pool, covering essential patents from companies like Apple, Microsoft, and Sony.
• HEVC Advance: A pool managed by Technicolor, Dolby, and others, with additional fees for certain implementations.
• Velos Media: A newer pool backed by Qualcomm, InterDigital, and others, targeting high-volume deployments.

These pools operate independently, meaning OEMs may pay multiple sets of royalties for the same codec. For example, a laptop manufacturer selling a device with HEVC encoding could owe fees to all three pools, depending on the patents it uses.

Are Patent Holders Double-Dipping?

Critics argue that HEVC’s fragmented licensing model leads to double-dipping—where patent holders charge royalties at multiple levels of the supply chain. For instance:

• A chipmaker pays royalties to patent pools for hardware that supports HEVC.
• The OEM then pays again when licensing the same patents for software integration.
• End users may ultimately bear these costs through higher device prices.

This layered fee structure contrasts sharply with H.264, where MPEG LA’s single pool simplified licensing. Many vendors now view HEVC as a financial burden, particularly as alternatives like AV1 and VVC (H.266) emerge with more flexible licensing models.

Industry Response: Why Vendors Are Dropping HEVC

The removal of HEVC support by Dell and HP is part of a growing trend. Other companies, including Intel and AMD, have also scaled back HEVC adoption in consumer hardware. Reasons include:

• High licensing costs: Multiple patent pools increase total royalty obligations.
• Complex compliance: Navigating overlapping patent claims is administratively burdensome.
• Rising competition: Newer codecs like AV1 offer royalty-free alternatives, appealing to both vendors and consumers.

“HEVC was a breakthrough in compression efficiency, but its licensing model has become unsustainable for many in the industry,” said Jan De Clercq, a video codec analyst at Nokia. “Vendors are increasingly prioritizing codecs with clearer, lower-cost licensing to avoid these pitfalls.”

What This Means for Consumers

For end users, the removal of HEVC support may lead to:

• Reduced compatibility: Some streaming services and applications may no longer work smoothly on affected devices.
• Higher costs: If vendors pass licensing fees to consumers, devices could become more expensive.
• Shift to alternatives: Support for AV1 and other codecs may grow, offering better efficiency without royalty burdens.

However, not all HEVC support has vanished. Some high-end devices and professional applications continue to use the codec, particularly where hardware acceleration is critical for performance.

Looking Ahead: The Future of Video Codecs

The decline of HEVC highlights broader challenges in the video codec ecosystem. As the industry moves toward AV1—developed by the Alliance for Open Media (AOMedia) and designed to be royalty-free—vendors are reassessing their strategies. AV1’s adoption is accelerating, with support from companies like Netflix, Google, and Amazon.

Meanwhile, the next-generation Versatile Video Coding (VVC or H.266) standard promises even greater compression efficiency but faces similar licensing scrutiny. The MPEG LA has already announced a patent pool for VVC, raising concerns about its long-term viability.

“The codec wars are far from over. HEVC’s struggles underscore the need for transparent, fair licensing models. Without them, the industry risks fragmenting further, leaving consumers and businesses caught in the middle.” — Dr. Thomas Wiegand, Executive Director of the Fraunhofer Heinrich Hertz Institute

For now, consumers with Dell or HP devices lacking HEVC support may need to rely on software decoding or alternative codecs. As the landscape evolves, the push toward open, royalty-free standards like AV1 could redefine how video compression works in the years ahead.