TP-Link Sues Netgear Over Alleged China Smear Campaign to Deter Sales
A major legal dispute has erupted between two U.S.-based networking companies, TP-Link and Netgear, over allegations of a smear campaign targeting TP-Link’s reputation. In a lawsuit filed in Delaware federal court, TP-Link accuses Netgear of orchestrating a coordinated effort to damage its sales by falsely asserting that its wireless routers have been compromised by Chinese hackers. The lawsuit claims that Net, an American competitor, systematically spread these false narratives through journalists and internet influencers, aiming to instill fear in customers about potential data breaches. TP-Link asserts that this campaign has already caused over $1 billion in lost sales opportunities and violates a 2024 settlement agreement in a patent dispute, which barred Netgear from disparaging its rival. The case has intensified existing tensions surrounding national-security concerns, as U.S. lawmakers from both parties have previously raised alarms about the potential security risks posed by TP-Link’s equipment following a series of cyberattacks on its routers.
The legal battle has significant financial implications, as TP-Link claims that the smear campaign has directly impacted its business operations and market position. The lawsuit highlights the broader context of ongoing competition within the networking industry, where trust in cybersecurity and data protection is a critical factor. Additionally, the case underscores the growing role of social media and influencer marketing in shaping public perception of technology companies, particularly in the realm of cybersecurity. As the legal proceedings unfold, the outcome could have far-reaching consequences for both companies, influencing their market strategies and financial performance.