Ericsson struck a multi-year cross-licensing patent agreement with handset vendor Oppo covering mobile technologies including 5G, in addition to a business cooperation deal.

Ericsson stated Oppo will make royalty payments and the financial benefits of the agreement have already been reflected in its Q2 2024 financial results.

The companies explained the agreement is in line with the global practice where companies providing products using 3GPP standards such as 5G need a licence deal with patent holders. It also ensures compensation for R&D investment.

There were few details on the business cooperation pact, other than it will cover device testing, focus on 5G development and include marketing activities.

Christina Petersson, chief intellectual property officer at Ericsson said the patent agreement will allow the vendor to further invest in fundamental communications technologies, as well as expand into additional areas such as IoT and consumer electronics.

“The licence confirms that the patent licensing industry works and is proof that a vast majority of licence agreements are based on business negotiations. It also reflects the mutual respect for each other’s patent portfolio,” she added.

Ericsson revealed it has a portfolio of more than 60,000 granted patents, with a leading 5G portfolio.

Oppo was notably embroiled in a patent row with Ericsson rival Nokia since 2021 in a number of European countries. However, the issue was resolved earlier this year when the two companies struck a cross-licensing agreement, resolving litigation in all jurisdictions.