Nokia has signed a multi-year smartphone patent licence deal with Chinese smartphone manufacturing giant Huawei.
Although, the financial details of the agreement were not revealed Nokia said, "it would start booking revenue, including and a one-off catch-up payment, from the fourth quarter," Reuters reported.
The Finnish company has also signed licensing deals with smartphone-making giants such as LG, Apple, Samsung Electronics and Xiaomi.
According to a Reuters report, over 90 per cent of Nokia's revenue comes from telecoms network equipment, however, in the wake of an industry-wide slide in the network business, licensing payments may prove highly profitable.
"It's a significant deal because Nokia now has agreements with all the big phone makers...The network market will remain tough, but the growing patent revenue will compensate for it," said analyst Mikael Rautanen from research firm Inderes, which holds a "buy" rating on the stock.