A lawsuit has been filed in Delaware federal court, alleging that Netgear, a US-based networking company, engaged in a smear campaign by spreading false claims about its rival TP-Link. The lawsuit, brought by TP-Link, states that Netgear allegedly disseminated misinformation suggesting that its technology has been infiltrated by Chinese entities. This campaign, according to TP-Link, is aimed at instilling security fears and deterring customers from purchasing its products, potentially leading to a sales loss exceeding $1 billion.
The lawsuit also claims that Netgear’s actions violate a 2024 settlement agreement reached during a patent dispute between the two companies. Under the terms of that settlement, TP-Link agreed to pay Netgear $135 million and included a provision that requires Netgear to not disparage its rival. TP-Link alleges that the recent smear campaign is a breach of this agreement.
TP-Link faces growing scrutiny in Washington over national-security concerns. US lawmakers from both major political parties have expressed concerns that TP-Link’s wireless equipment could be exploited by Chinese hackers, following a series of cyberattacks on its routers. This lawsuit adds another layer to the ongoing tension between the two companies and highlights the broader geopolitical implications of cybersecurity concerns in the tech industry.