While terms of the cross-license agreement remain confidential, Lenovo will make a net balancing payment to Nokia, the Finnish telecom equipment maker said.

Nokia launched its legal battle against Lenovo in 2019 over alleged infringement of 20 video-compression technology patents and had cases in the United States, Brazil and India, in addition to six cases in Germany.

Lenovo had also sued Nokia in a court in California.

Things appear to have come unstuck when a Munich court ruled here in September that Lenovo infringed one of Nokia's patents, and it ordered an injunction and a recall of products from retailers. The order was stayed here in November by a German appeals court.

“The global accord struck will enable future collaboration between our companies for the benefit of customers worldwide”, said John Mulgrew, chief intellectual property officer of Lenovo.

Nokia’s patent portfolio is composed of around 20,000 patent families, including over 3,500 patent families declared essential to the 5G technology standard.