Under the terms of the agreement, IBM has granted licences to its 42,000 pending and issued patents which cover a range of telecoms services and technologies.
In turn, Level 3 has granted IBM licences to more than 850 pending and issued patents which cover a range of information handling systems.
The licences will last as long as the lives of the respective patents. Other terms of the agreement were not disclosed.
Jack Waters, chief technology officer at Level 3, said: "This patent agreement provides Level 3 with the opportunity to take advantage of IBM's innovation as we continuously expand the range of services we provide our customers."
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