In a win-win move for both companies, Nokia and Honor signed a 5G patent cross-licensing agreement, paving the way for further development and adoption of 5G technology. The deal, announced Jan. 4, covers key breakthroughs in 5G and other cellular networks and is Nokia’s fourth major smartphone patent deal in the past year.

Specific terms of the deal remain confidential, but both companies expressed satisfaction. Nokia’s Chief Licensing Officer Susanna Martikainen said the deal underlines the strength of their patent portfolio and decades of contributions to mobile technology. Honor’s representative Zhou Wenyu emphasized their commitment to intellectual property rights and their belief in a fair price for important patents.

This agreement is much more than a handshake on paper. This prevents potential legal battles while encouraging collaboration on key 5G technology. Both companies are major players in the mobile industry. Nokia has invested more than €140 billion in research and development since 2000, resulting in approximately 20,000 patent families; More than 6,000 of them are key to 5G. It is also Nokia’s fourth major smartphone patent deal in the last 12 months.

Honor, on the other hand, sees the deal as proof of its commitment to innovation and intellectual property rights. They also invest heavily in R&D, reportedly spending around 10% of their revenue to stay ahead of the rest. It is also said that global patent applications have exceeded the 20,000 mark.

The news follows a recent Chinese court ruling in favor of Nokia in a copyright dispute with another phone maker. The decision sets a global precedent for litigation over key patents related to the 2G-5G standard. For those who don’t know, Nokia also made an agreement with Samsung at the beginning of 2023 and with Apple in July. With the participation of Samsung, Apple and now Honor, Nokia’s grip on the 5G patent space appears to be tightening.