The Codec Crackdown: How Rising Fees Are Forcing HP and Dell to Cripple Laptop Video Capabilities

In the ever-evolving world of consumer electronics, a quiet storm has been brewing over video codec licensing, culminating in a surprising move by major laptop manufacturers. HP and Dell, two giants in the PC industry, have begun disabling hardware support for High Efficiency Video Coding (HEVC), also known as H.265, in select laptops despite the built-in capabilities of their Intel and AMD processors. This decision, which affects video playback in web browsers and certain applications, has left users puzzled and frustrated, especially as it comes amid rising royalty costs for the codec.

The issue first gained widespread attention through user reports on forums and social media, where owners of new HP and Dell machines discovered that HEVC content wouldn’t play smoothly, forcing reliance on less efficient software decoding. This not only drains battery life but also hampers performance on devices marketed for productivity and media consumption. According to reports from Ars Technica, the disabling is intentional, implemented at the OEM level, and tied to upcoming increases in licensing fees set to take effect in January 2026.

At the heart of this controversy is the complex web of patent pools and royalty structures governing HEVC. Developed as a successor to H.264/AVC, HEVC promises better compression for 4K and higher-resolution video, making it essential for streaming services and modern content creation. However, its adoption has been hampered by multiple patent holders demanding fees, leading to fragmented licensing pools like those managed by Access Advance and VIA Licensing Alliance.

Rising Royalties and OEM Economics

These licensing bodies have announced royalty hikes, with rates for HEVC in the U.S. jumping from $0.20 to $0.24 per unit for volumes over 100,001. For high-volume sellers like HP and Dell, which shipped millions of units in Q3 2025 according to Gartner data cited in Ars Technica, this seemingly small increase translates to substantial costs—potentially millions of dollars annually. By disabling the hardware decoding feature in entry-level and midrange business laptops, these companies can avoid paying royalties altogether for those models.

This cost-saving strategy isn’t new in the industry. Last year, NAS provider Synology ended support for HEVC transcoding on its platforms, citing widespread device compatibility and the desire to reduce “unnecessary resource usage.” But for laptop users, the impact is more direct. Posts on X (formerly Twitter) from users like those aggregated in recent searches highlight frustration, with one viral thread comparing the move to “sabotaging your own product to pinch pennies,” reflecting a sentiment of betrayal among tech enthusiasts.

Industry insiders point out that while processors from Intel (sixth-generation Core and later) and AMD include native HEVC decoding, OEMs have the option to toggle this feature via BIOS or driver configurations. Tom’s Hardware reports that this disabling is particularly prevalent in business-oriented lines like HP’s ProBook and EliteBook series, as well as Dell’s Latitude models, where video editing might not be a primary use case, allowing manufacturers to justify the cutback.

User Backlash and Workarounds

The fallout has been swift, with Reddit communities such as r/technology and r/hardware buzzing with discussions. One thread on r/sysadmin, as noted in web searches, details how IT professionals are scrambling to address video playback issues in corporate environments, where HEVC is common in surveillance footage and training materials. Users report that even after installing Microsoft’s HEVC extension from the Store, hardware acceleration remains unavailable, forcing CPU-intensive software fallback that can overheat devices and shorten battery life.

Workarounds are emerging, but they’re not straightforward. Some tech-savvy users have turned to third-party drivers or BIOS mods, though these carry risks of voiding warranties or introducing instability. Hacker News discussions delve into open-source alternatives like AV1, which is royalty-free and gaining traction, but transitioning ecosystems takes time. Meanwhile, posts on X from influencers like JayzTwoCents echo broader concerns about proprietary tech stifling innovation, drawing parallels to past codec wars.

For consumers, the irony is palpable: paying premium prices for laptops with powerful integrated graphics, only to find key features neutered. This has sparked debates on whether such practices violate consumer expectations or even advertising standards, with some calling for regulatory scrutiny similar to antitrust probes in other tech sectors.

Broader Industry Implications

Looking beyond HP and Dell, this move signals a potential shift in how OEMs navigate intellectual property costs. As video standards evolve—with AV1 and VVC on the horizon—the pressure to balance features and fees intensifies. Guru3D notes that other manufacturers might follow suit, especially for budget models, potentially fragmenting the market where premium devices retain full capabilities while others lag.

Intel and AMD, whose chips are affected, have remained largely silent, but community forums like the Intel Community reveal ongoing threads where users with Core Ultra processors, such as the 155H in HP’s ProBook 460, report persistent issues despite updates. This underscores a disconnect between silicon capabilities and end-user experience, exacerbated by OEM decisions.

The timing aligns with broader economic pressures in the PC market, where sales have plateaued post-pandemic. By trimming costs on non-essential features, HP and Dell aim to maintain margins, but at what cost to brand loyalty? Analysts from Gartner, as referenced in various reports, predict that as 8K content proliferates, demand for efficient decoding will surge, potentially leaving these disabled machines obsolete sooner.

Future of Video Codecs in Computing

Experts foresee a push toward open standards to circumvent such licensing quagmires. AV1, backed by the Alliance for Open Media (including Google, Netflix, and Intel), offers comparable efficiency without royalties, and its hardware support is expanding in newer GPUs. However, adoption lags in browsers and apps, where HEVC remains entrenched.

For now, affected users are advised to check model specifications carefully. HP support threads, like those on their community forums, suggest contacting support for potential BIOS updates, though no official reversals have been announced. Dell’s similar stance, as per Slashdot, indicates this is a calculated industry trend rather than an isolated incident.

As the January 2026 fee hike looms, the codec crackdown serves as a stark reminder of the hidden economics shaping our devices. What seems like a minor tweak in firmware reveals deeper tensions between innovation, cost, and consumer rights in the tech landscape. Industry watchers will be monitoring whether user outcry prompts policy changes or if this becomes the new normal for cost-conscious computing.