[WASHINGTON] California-based TP-Link Systems says it may take a sales hit of more than US$1 billion because of erroneous reports that the networking company’s technology has been used to launch Chinese cyber attacks under Beijing’s control.
In a lawsuit, TP-Link claims its larger rival, Netgear, orchestrated a smear by planting false claims with journalists and Internet influencers with the goal of scaring off customers.
Closely held TP-Link, which makes wireless routers, alleges in a complaint filed on Monday (Nov 17) that Netgear’s campaign “threatens injury to well over a billion dollars in sales” and violates a 2024 settlement of a patent fight. That accord, in which TP-Link agreed to pay Netgear US$135 million, includes a provision that the larger company promises not to disparage its competitor, according to the suit in Delaware federal court.
“Netgear published and caused to have propagated each of these false and misleading statements about TP-Link and TP-Link’s products,” the smaller company’s lawyers said in the 23-page complaint.
A representative of San Jose, California-based Netgear did not immediately respond to a request for comment.
The suit comes as TP-Link faces growing scrutiny in Washington over national-security issues. US lawmakers from both parties have expressed concern that TP-Link’s wireless equipment could be exploited by Chinese hackers following a series of attacks on its routers.
Bloomberg News reported in October that the Trump...
[WASHINGTON] California-based TP-Link Systems says it may take a sales hit of more than US$1 billion because of erroneous reports that the networking company’s technology has been used to launch C...