Cross-licensing means that both parties to a transaction license each other to use their own patents and know-how and act as technology suppliers and recipients. Within the term and territory of the contract, both parties have the right to license the use, production and sale of products to the other party. The licensing rights of all parties can be exclusive or non-exclusive. Both parties have equal rights and generally do not need to pay royalties. In international technology trade, the contract of transferring technology by cross-licensing is usually called cross-licensing contract or cross-licensing agreement.
Simply put, you use my patent, I use your patent, and use each other. But it can't be limited to others.