The licenses of both companies include the standardization of mobile patents. So, both Nokia and Xiaomi can both develop new devices in the field of Internet of Things (IoT).
The license agreement has been signed by both companies on Wednesday (5/7/2017). As stated by Nokia CEO Rajeev Suri, his side welcomed positively related to the great cooperation.
"Xiaomi is one of the largest smartphone vendors in the world and we are delighted to welcome this deal," Suri said as quoted by Reuters.
CEO of Xiaomi Lei Jun, also said the collaboration of these two big players on the ground of this technology could be beneficial for building network in software. He is optimistic Xiaomi can continue to create the best and most up-to-date devices.
After the deal, Nokia will provide a high capacity network infrastructure device for Xiaomi. Each company will also work with technology focused on data center.
Not just Xiaomi, Nokia has previously signed an agreement with Apple and Samsung. As assessed by analyst OP Equity Hannu Rahuala, the deal is very profitable for Nokia because it has managed to negotiate business with one of the big players like Xiaomi.
Xiaomi's portfolio in patents quite a lot. Previously, the Beijing-based technology company has filed more than 16,000 patents for seven years since its establishment.
Companies even want to strengthen their portfolio of technology devices, ranging from TV, smartphone, air conditioning, to other smart home devices.