Ericsson and Samsung have just signed a cross-licensing deal, covering patents relating to GSM, UMTS and LTE standards for networks and handsets.
Ericsson today announced that the initial payment from the agreement will boost Q4 sales by SEK 4.2 billion (£394 million) and net income by SEK 3.3 billion (£309 million).
Royalty payments from Samsung will also be made throughout the multi-year deal.
However, further details have not been disclosed and it is not clear how long the contract will run for.
"We are pleased that we could reach a mutually fair and reasonable agreement with Samsung," said Kasim Alfalahi, Ericsson's chief intellectual property officer. "We always viewed litigation as a last resort."
The agreement brings an end to a long-running patent feud between the two firms. Back in 2012, Ericsson took Samsung to court (opens in new tab), alleging that the South Korean giant had infringed its patents.
Samsung, which has been involved in a number of high-profile skirmishes with Apple (opens in new tab) over the past few years, subsequently hit back at the Swedish mobile network equipment with a legal case of its own.
"This agreement allows us to continue to focus on bringing new technology to the global market and provides an incentive to other innovators to share their own ideas," added Alfalahi.
Ericsson currently owns more than 30,000 patents relating to 2G, 3G and 4G (opens in new tab) network technology.