Chinese ICT solutions provider Huawei Technologies and Swedish telecommunications equipment manufacturer Ericsson have sealed a global patent license deal.

The two companies have agreed on a cross license that covers patents relating to both companies' wireless standard-essential patents, including the GSM, UMTS and LTE cellular standards.

"We are pleased to extend our global cross license agreement with Ericsson," said Jianxin Ding, Head of Global Intellectual Property at Huawei Technologies.

Ding said the contract reflects the two companies' joint view that innovation and intellectual property rights shall be protected.

In addition, he said that reasonable compensation for the implementation of intellectual property rights is vital to promoting technology innovation, sharing and standardising technology, driving and accelerating industry evolution.

As part of the renewed agreement, Huawei Technologies will ensure on-going royalty payment based upon actual sales to Ericsson from 2016 and onwards.

Both companies are able to access and implement each other's standard essential patents and technologies.

Kasim Alfalahi, Chief Intellectual Property Officer at Ericsson said the development shows commitment to drive innovation and industry growth. "In the future, everyone and everything will be connected through the Networked Society and Internet of Things.

Our role is to drive this transformation, opening up new ways to innovate, to collaborate, and to empower people, business, and society," Alfalahi said.