Chinese device maker Xiaomi and Finnish equipment vendor Nokia signed a multi-year patent deal which includes a cross-licensing agreement to each company’s patents for various cellular standards.

As part of the deal, Xiaomi acquired patent assets from Nokia.

The two companies also agreed to collaborate in a number of areas, with Nokia providing network infrastructure equipment designed for use in Xiaomi’s data centres and web operations. In addition, the companies said they will explore opportunities to cooperate in areas such as IoT, VR, augmented reality (AR) and artificial intelligence.

 

CCS Insight analyst Ben Wood tweeted the deal is “a much needed milestone” for Xiaomi, which has been losing market share in the smartphone space after a strong domestic debut, and is now looking to grow beyond China as well as into the smart home space.

Rajeev Suri, president and CEO of Nokia, said: “We are delighted to have reached an agreement. We look forward to working together on a wide range of strategic projects.”

Lei Jun, chairman and CEO of Xiaomi, added: “Xiaomi is committed to building sustainable, long-term partnerships. Our collaboration with Nokia will enable us to tap on its leadership in building large, high-performance networks, as we seek to create even more remarkable products and services.”

Financial terms of the deal were not disclosed.

In late 2014 Xiaomi was hit by an injunction in India banning the sale of some of its smartphones for infringing on essential patents of Ericsson. A complaint with the Delhi High Court was filed after Xiaomi failed to respond to six requests for royalties.