Netgear Accused by Competitor of Spreading China-Related Security Concerns

California-based TP-Link Systems has filed a lawsuit against competitor Netgear, alleging a coordinated smear campaign that could cost the networking company over $1 billion in sales. The legal action claims Netgear planted false information with journalists and internet influencers suggesting TP-Link’s technology has been used for Chinese cyber attacks under Beijing’s control.

Filed on Monday in Delaware federal court, the 23-page complaint accuses Netgear of violating a 2024 settlement agreement reached between the two companies. Earlier this year, TP-Link had agreed to pay Netgear $135 million to resolve a patent dispute, with the settlement including a non-disparagement clause that TP-Link now claims Netgear has breached.

“Netgear published and caused to have propagated each of these false and misleading statements about TP-Link and TP-Link’s products,” the company’s lawyers stated in the complaint. TP-Link further alleges Netgear used “its earnings calls as a platform to spread falsehoods” and disseminated misinformation about TP-Link’s ties to China to computer experts and podcasters.

As of press time, San Jose-based Netgear has not responded to requests for comment on the allegations.

The lawsuit comes amid heightened scrutiny of TP-Link in Washington over national security concerns. Lawmakers from both parties have expressed worries that TP-Link’s wireless equipment could be exploited by Chinese hackers, following a series of attacks on its routers. Last year, the U.S. Cybersecurity and Infrastructure Security Agency identified vulnerabilities in TP-Link routers that could potentially be exploited to execute remote code.

The stakes grew higher last month when Bloomberg News reported that the Trump administration is considering issuing an assessment that TP-Link poses a national security threat. This follows an investigation into the company’s China ties that began in 2023. Such a determination could potentially lead to restrictions or an outright ban on TP-Link’s U.S. operations.

Founded in China nearly three decades ago, TP-Link has recently accelerated efforts to distance itself from its origins. The company completed a corporate restructuring last year, splitting into two separate entities: an American unit headquartered in Irvine, California, and a Chinese unit based in Shenzhen.

While the U.S.-based entity has pledged significant investments in America, a Bloomberg News investigation in April found the company still maintains substantial operations in mainland China. TP-Link maintains it is now a U.S.-based manufacturer that invests millions of dollars annually in safeguarding its products from cyber intrusions.

Before the corporate split, TP-Link had established itself as the world’s largest provider of consumer Wi-Fi equipment, according to market research firm IDC. Its routers, which relay information from the internet to devices such as computers and smartphones, are widely sold through major retailers including Amazon and Best Buy, and can be found in homes and small businesses across the United States.

The networking equipment market has become increasingly competitive and politically sensitive as concerns about digital security and foreign influence have grown. Companies with Chinese origins face particular challenges in the current geopolitical climate, with U.S. officials increasingly focused on potential vulnerabilities in telecommunications infrastructure.

In its lawsuit, TP-Link is seeking a court order to prevent Netgear from continuing the alleged defamation campaign, as well as monetary damages for what it characterizes as false and damaging statements. The case highlights the intensifying competition in the networking equipment sector, where market share battles are now being fought not only on technical specifications and price points but also on questions of security and national origin.