Ericsson announced it has extended a global cross-licensing deal with Huawei that includes patents covering GSM, UMTS and LTE technology.
Under the terms of the deal, Huawei will make royalty payments to Ericsson, based on sales, from 2016 onwards, the Swedish vendor said in a statement.
It did not provide further details, noting that the terms of the agreement between the pair are confidential.
"We are pleased to extend our global cross license agreement with Ericsson," Huawei's head of global intellectual property Jianxin Ding.
"This new agreement reflects the two leading companies' joint view that innovation and intellectual property rights shall be protected, and reasonable compensation for the implementation of intellectual property rights is vital to promoting technology innovation, sharing and standardising technology, driving and accelerating industry evolution," Ding said.
Ericsson shared a similar comment from its chief intellectual property officer Kasim Alfalahi, who noted that the new deal shows his company's "commitment to drive innovation and industry development."
Ericsson said it is sticking by its estimate that it will generate intellectual property revenues of 13 billion to 14 billion kronor (€1.4 billion-€1.5 billion) for full-year 2015.