Acer and ASUS resume German PC shipments following Nokia HEVC settlement
Acer and ASUS have resumed shipping HEVC-enabled PCs in Germany after resolving their respective patent licensing disputes with Nokia. While ASUS settled via an arbitration agreement, Acer is employing a dual-distribution method that includes shipping units without pre-installed HEVC support, requiring users to manually activate it via third-party software channels.
Key Takeaways
- ASUS entered a confidential arbitration agreement with Nokia, leading to the withdrawal of German injunctions and the restoration of its regional online store.
- Acer will offer systems both with pre-installed codecs and 'codec-free' units requiring manual user activation via official third-party software.
- The resolution follows a January 22, 2026, Munich I Regional Court ruling that blocked the import and sale of H.265/HEVC-compliant devices.
- Nokia's enforcement campaign successfully leveraged standard-essential patents (SEPs) including EP 2 375 749, which covers stream adaptation efficiency.
Why It Matters
The settlement removes a significant bottleneck in Europe’s largest PC market, ending a four-month disruption that forced vendors to rely on existing retail inventory. It underscores the intensifying pressure on hardware OEMs to license video compression standards directly from patent holders rather than relying on component suppliers. Acer’s 'unbundled' codec approach signals a potential shift in how manufacturers navigate standard-essential patent (SEP) obligations without universal licensing. Investors and strategists should monitor whether this dual-distribution model becomes a standard industry workaround to avoid injunctions in jurisdictions with strict FRAND interpretations, such as Germany. Watch for a UK High Court rate-setting trial later this year to establish global benchmarks for Nokia’s multimedia portfolio.
Additional Context
The resolution of the dispute between Nokia, Acer, and ASUS follows a broader pattern of aggressive video patent enforcement across Europe and the U.S. In March 2025, per JUVE Patent, Nokia reached a global settlement with Amazon, ending litigation that had briefly suspended the sale of Fire TV streaming sticks in Germany. That settlement, which remained confidential, confirmed that even dominant platform holders are no longer immune to royalty demands for foundational video compression technologies. Similar enforcement actions by Nokia led to a multi-year licensing agreement with Hisense in January 2026, which covered the use of Nokia’s multimedia research in smart TVs and resolved parallel litigation at the Unified Patent Court (UPC). Recent rulings from the Munich I Regional Court have further tightened the FRAND (Fair, Reasonable, and Non-Discriminatory) framework. In early 2026, per Finnegan, the court refined its 'willingness' test, requiring implementers to not only declare an intent to license but also to pay an 'undisputed amount' of royalties as an advance to avoid sales bans. This judicial shift has significantly increased the legal risk for manufacturers like Acer and ASUS who previously attempted to challenge Nokia’s royalty rates in the UK courts. Regulatory efforts to simplify this landscape have stalled. Per Law.com, the European Commission recently withdrew its proposed SEP regulation in 2025 following intense criticism from patent holders and a lack of consensus among member states. In the absence of centralized EU oversight, the industry remains dependent on court-calculated royalty corridors. By opting for arbitration, ASUS and Acer have avoided potentially higher costs associated with long-term litigation or technical workarounds, though Acer’s decision to offer codec-free hardware highlights a new layer of complexity in the consumer streaming delivery chain.
Read full article at videocardz.com
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