Finland-based electronics company Nokia has inked an agreement with rival Samsung regarding license patents covering video standards.

The deal will be a lucrative one for Nokia as it will yield the HMD Global-owned company a ‘substantial’ amount of royalty payments from Samsung, GizmoChina reports.

Nokia has been busy building an impressive patent portfolio spanning various areas in the tech industry, with the company alleged to own thousands of patent licenses.

Samsung has not yet confirmed details of the deal, however it is believed the South Korean tech giant will benefit from the agreement as it incorporates cutting-edge technology into its new devices.

Signing the deal ensures Samsung avoids any litigation from Nokia over unlicensed use of patented technology.

Samsung is facing a lawsuit from Swedish mobile phone maker Ericsson in Germany, Belgium and in the Netherlands over infringements of mobile phone patents.

In a reverse-suit, Samsung is also suing Ericsson in Wuhan, China, and has asked the Chinese court to set a global royalty rate for Ericsson’s 4G and 5G standard-essential patents.