The Finnish and Chinese companies today signed a cross-licensing patent deal ‘focused around the data center’, according to a CNBC report. This will allow Nokia and Xiaomi to develop new products, as they look to collaborate further in areas such as the Internet of Things, augmented and virtual reality, and artificial intelligence.

The deal represents a positive strategic move for both companies, with Finland’s Nokia gaining a significant Chinese partner, and China’s Xiaomi bolstering their patent portfolio as they look to expand their products and services business globally. Along with some unspecified patents that Xiaomi has acquired from Nokia, both companies are licensing cellular standard essential patents from each other, and Nokia is providing network infrastructure equipment.

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The partnership is also expected to “explore” AR and VR, which both companies have been investing in already, with Nokia’s major OZO VR camera platform, and Xiaomi’s Mi VR, a smartphone-based VR headset solution.

“Xiaomi is committed to building sustainable, long-term partnerships with global technology leaders”, said Lei Jun, chairman and CEO of Xiaomi. “Our collaboration with Nokia will enable us to tap on its leadership in building large, high performance networks and formidable strength in software and services, as we seek to create even more remarkable products and services that deliver the best user experience to our (product brand) Mi fans worldwide”.

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