Google Inc entered into a patent cross-licensing agreement with Cisco Systems Inc, the internet search giant's second such deal in as many months.
Google's shares were up one percent at $1,145 in premarket trading on Tuesday.
The "long-term" agreement is an effective way to help prevent unnecessary patent lawsuits, the companies said in a statement.
"We're pleased to enter into this cross-license, and we welcome discussions with any company interested in a similar arrangement," said Allen Lo, Google's deputy general counsel for patents.
Details of the agreement were not disclosed.
Google last month reached a global patent agreement with Samsung Electronics Co Ltd.
Most of the large technology companies, including Apple Inc, are involved in multiple patent litigations against each other, with the majority involving smartphone patents.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Savio D'Souza and Saumyadeb Chakrabarty)