Swedish telecom company Ericsson has renewed a multi-year deal with Chinese Huawei. Under the agreement, the two firms will pay each other royalties for the use of the other’s patents in technologies.
Ericsson expects to report 11 billion SEK ($1 billion) in intellectual property licensing income following the renewal of the deal.
“With the current portfolio of IPR licensing contracts, Ericsson estimates the full-year 2023 IPR licensing revenues to be approximately 11 billion SEK,” the firm said in a statement.
Huawei said the cross-licensing agreement announced on Friday, August 25, would cover patents essential for 3G, 4G and 5G worldwide. The China-based firm added, that the deal was long-term without giving a specific time frame.
“As major contributors of standard essential patents for mobile communication, the companies recognize the value of each other’s intellectual property. This agreement creates a stronger patent environment,” said Alan Fan, head of Huawei intellectual property department.