- TP-Link claims that Netgear misrepresented a Microsoft report, significantly damaging its public reputation
- Netgear CEO remarks allegedly incorrectly linked TP-Link to Chinese state-backed cyber campaigns
- Disputed statements refer to Typhoon-named threat groups without vendor attribution
TP-Link has filed a lawsuit accusing fellow hardware giant Netgear of knowingly spreading misleading claims that portrayed the company as linked to Chinese state-backed cyber threats.
The complaint alleges that comments by Netgear CEO Charles Prober during a recent earnings call suggested that TP-Link had a role in cyberattacks attributed to groups tracked under the Typhoon nomenclature, despite not being attributed to the vendor in initial reports.
TP-Link claims that these statements distorted public perception and contributed to media reports suggesting that its products pose a national security problem in the United States.
Disputed references to cyberespionage activity
During the earnings call, Prober referenced Microsoft’s findings on a cyber campaign involving TP-Link routers and framed the issue as part of a broader national security investigation.
TP-Link disputes this interpretation, saying the report did not identify any involvement by the vendor itself, only that attackers had exploited its routers as part of a botnet.
The company claims that citing multiple Typhoon-named threat groups created a misleading link between the vendor and Chinese state operations.
TP-Link claims that these statements were not only false, but also defamatory.
The company touts that it is incorporated and headquartered in California, employs hundreds of people in the state and maintains US-based management responsible for global decisions.
Its complaint acknowledges the existence of a separate China-based predecessor entity, but claims that TP-Link Systems and TP-Link Technologies now operate independently.
The company claims its US headquarters refutes claims of Chinese government control or risk based on origin.
The filing also refers to an earlier settlement in which TP-Link paid Netgear $135 million to resolve patent disputes.
Under this agreement, Netgear allegedly committed to stop making disparaging claims about TP-Link and its products.
TP-Link claims that the remarks in the recent investor calls constitute a breach of this agreement and constitute commercial disparagement and unjust enrichment.
The seller is seeking damages and a jury trial to resolve reputational damages and alleged breach of contract.
Media reports have suggested that US agencies may be investigating TP-Link’s products in relation to national security concerns, although no official confirmation has been issued.
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