The California-based company TP-Link has declared that it may lose more than a billion dollars as a result of false allegations claiming its networking equipment is used by Beijing for cyberattacks. In a lawsuit filed in federal court in Delaware, the router manufacturer asserts that competitor Netgear orchestrated a campaign aimed at undermining its reputation and frightening customers.
According to TP-Link, Netgear supplied journalists, bloggers, and podcasters with unfounded claims that the company’s products were supposedly controlled by Chinese authorities. The lawsuit states that such actions violate the terms of a 2024 agreement that resolved a prior patent dispute between the two firms. At that time, TP-Link agreed to pay Netgear 135 million dollars, and the settlement included a clause prohibiting either party from disparaging the other. TP-Link now argues that Netgear breached this obligation by using public appearances and earnings calls to disseminate “false and misleading assertions.”
Netgear has yet to comment on the case. The situation is further complicated by the growing scrutiny of network-equipment security in the United States. Lawmakers from both parties have expressed concern that TP-Link routers could be exploited by hackers in China. In October, Bloomberg reported that the Trump administration was considering formally designating the company a national-security threat — an investigation into its ties with China began last year. Altogether, these developments could bring the company closer to partial or even full restrictions on its U.S. operations.
TP-Link, however, emphasizes that it now operates as an American manufacturer, claiming to spend substantial sums each year to secure its products against cyberthreats. Even so, the brand’s origins continue to play a role. TP-Link was founded nearly 30 years ago in China and last year completed a corporate split into two entities: an American arm based in Irvine and a Chinese division located in Shenzhen. The U.S. subsidiary plans to invest aggressively in domestic manufacturing and research, though it still maintains a significant presence in its home country.
Before the split, TP-Link held the leading global position in consumer Wi-Fi device shipments, according to IDC. Its routers are widely available on Amazon and at Best Buy and are used in countless homes and small businesses across the country. The company is now asking the court to prohibit Netgear from further damaging its reputation and to award compensation for the harm incurred.
