China-based device maker Oppo and Ericsson signed a global cross-licensing agreement covering their respective 2G, 3G and 4G patent portfolios.

The agreement means Oppo, which Strategy Analytics ranked as the fourth-largest vendor globally during Q4 2018, will make ongoing royalty payments to Ericsson based on a substantial part of its annual sales. It also outlines business cooperation on a number of projects related to 5G including device testing, customer engagement and demonstrations at MWC19 Barcelona.

Adler Feng, head of Oppo’s Global Intellectual Property Department, said in a statement the company is looking forward “to working with Ericsson to drive cutting-edge innovation in products and services.”

Gustav Brismark, Ericsson’s chief intellectual property officer, said the deal confirms the value of its patent portfolio and further validates its FRAND (fair, reasonable and non-discriminatory) licensing programme.

Ericsson said it has signed more than 100 patent licensing agreements to date.