California-based TP-Link has filed a lawsuit against Netgear, accusing it of orchestrating a smear campaign by spreading false claims about Chinese government infiltration in its technology. The company claims that these falsehoods are aimed at scaring off customers and potentially leading to a sales loss exceeding $1 billion. The suit alleges that Netgear’s actions violate a 2024 agreement that required the public company not to disparage its rival.
The lawsuit, filed in Delaware federal court, comes as TP-Link faces increasing scrutiny in Washington regarding national security concerns. US lawmakers from both parties have voiced worries about the potential of Chinese hackers exploiting TP-Link’s wireless equipment following a series of attacks on its routers. The company’s legal battle against Netgear adds to the broader tensions surrounding tech industry competition and national security concerns.
The 2024 settlement agreement between TP-Link and Netgear includes a clause that prohibits public companies from disparaging their competitors. TP-Link alleges that Netgear’s campaign violates this provision, claiming the company’s actions could result in over a billion dollars in damages. The case highlights the growing challenges in the tech sector regarding misinformation and the impact of geopolitical tensions on business operations.