Google and Honeywell have agreed to settle an ongoing patent dispute between the two companies. Prior to the agreement, Google and Honeywell, which is best known for its line of thermostats, were at odds over patents relating to the former's Nest Labs division.

Google and Honeywell put Nest patent dispute to rest

According to the terms of the agreement, the two companies have agreed to cross-license patents as part of the deal.

Google Inc. and Honeywell today announced that they have reached a long-term patent cross-license agreement reflecting the respective strength of the companies' patent portfolios. Google and Honeywell believe that this patent accord promotes product innovation and consumer choice in the market for smart home products. The agreement fully resolves pending patent litigation between Honeywell and Nest Labs. Terms of the agreement are otherwise confidential.

The agreement comes after Honeywell initially filed a patent infringement case against now Google-owned Nest in 2012 over technology used in its Learning Thermostat. Any financial terms of the deal were not disclosed.