Microsoft, who recently bought Nokia and camera company Canon, have finalized a "broad patent cross-licensing agreement."

While the exact details of the agreement haven't been divulged, according to the press release found on Microsoft's website, the said agreement would allow both companies to mutually benefit as both would " gain licenses to each other's highly valued and growing patent portfolios."

"This collaborative approach with Canon allows us to deliver inventive technologies that benefit consumers around the world," said Nick Psyhogeos, general manager, associate general counsel, IP Licensing of the Innovation and Intellectual Property Group at Microsoft. "Microsoft believes cooperative licensing is an effective way to accelerate innovation while reducing patent disputes."

The release also makes mention that the agreement would cover a range of products and services that would include "certain digital imaging and mobile consumer products."

The agreement has sparked rumors of imaging upgrades on Nokia Lumia smartphones which could soon come with a canon's camera technology. The possible areas of exchange would obviously be with canon utilizing some Windows UI to its devices while canon lenses could ultimately end up on Nokia Lumia handsets.

According to Gizbot, "Nokia has always been a pioneer in producing some of the finest camera-centric phones, including the much publicized Lumia 1020." This newest partnership would then have the potential to propel Nokia to becoming the premier camera-phone device in the competitive market of smartphones.

Prior to this milestone agreement, Nokia has been utilizing Carl Zeiss lenses on its higher-end smartphone devices and has been noted to be continuously upgrading its Nokia Camera app.

The Nokia Lumia 1020 is by far the superior camera-phone available in the market with its 41-megapixel camera. No rival company has been able to develop a phone that comes close to the digital quality of the Lumia 1020 and with Canon being its new partner, sky's the limit for imaging potential.

The other mid-range device of Nokia is the Lumia 520 which is similar to its more powerful 1020 sibling.

Reports indicate that the Nokia Lumia 1020 next-generation smartphone could hit the market this Fall, meaning it would be put up against the anticipated iPhone 6 also set to be released sometime in mid-September.

For a full spec comparison of the two Nokia Lumia devices, head over to the following sites: Esato and Phonearena.

What're your thoughts on the Microsoft/ Nokia and Canon partnership? Are you a Nokia Lumia user? Let us know your experience with the smartphone's camera by placing your comments below!