I thought that with patents, each entity among the manufacturing chain potentially needs a license? There is no analog for the first sale doctrine, or neither a requirement for consistent enforcement (as is there for trademarks).
There is. It is called patent exhaustion. See https://en.wikipedia.org/wiki/Exhaustion_doctrine_under_U.S....
There was a fad of issuing a "covenant not to sue" in lieu of a license, specifically to try to avoid triggering exhaustion, but courts seem to be (correctly, in my IANAL opinion) treating them as licenses anyway. See, e.g., https://www.patentlyo.com/patent/2013/01/3rd-circuit-covenan...
Otherwise... thats pretty horrific. Would businesses using HP laptops en masse be exposed too?
THIS PRODUCT IS LICENSED UNDER THE AVC PATENT PORTFOLIO LICENSE FOR THE PERSONAL USE OF A CONSUMER OR OTHER USES IN WHICH IT DOES NOT RECEIVE REMUNERATION TO (i) ENCODE VIDEO IN COMPLIANCE WITH THE AVC STANDARD (“AVC VIDEO”) AND/OR (ii) DECODE AVC VIDEO THAT WAS ENCODED BY A CONSUMER ENGAGED IN A PERSONAL ACTIVITY AND/OR WAS OBTAINED FROM A VIDEO PROVIDER LICENSED TO PROVIDE AVC VIDEO.
https://www.openh264.org/BINARY_LICENSE.txt
I'm not sure if if the relevant patent pools even have incoming licensing coverage for live Internet video because that arrived only after the pools had long been established.