- TP-Link claims Netgear misrepresented a Microsoft report, significantly damaging its public reputation.
- Netgear CEO’s statements allegedly falsely linked TP-Link to Chinese state-backed cyber campaigns.
- Controversial claims refer to threat groups called Typhoon without specifying the manufacturer
TP-Link has filed a lawsuit accusing hardware giant Netgear of knowingly spreading misleading claims portraying the company as linked to Chinese state-sponsored cyber threats.
The complaint is based on comments made by Netgear CEO Charles Prober at a recent press conference that TP-Link played a role in cyberattacks attributed to groups traced to the Typhoon nomenclature, although initial reports did not identify the vendor.
TP-Link claims that these statements have distorted public perception and contributed to media reports suggesting that its products pose a national security risk in the United States.
Controversial evidence of cyberespionage activities
During the earnings call, Prober referred to Microsoft’s findings regarding a cyber campaign involving TP-Link routers and framed the issue as part of a broader national security assessment.
TP-Link disputes this interpretation, saying the report finds no involvement by the provider itself, but only that attackers have exploited its routers as part of a botnet.
The company claims that the naming of several threat groups mentioned in the Typhoon case has created a misleading link between the supplier and Chinese state-owned enterprises.
TP-Link claims that these statements are not only false, but also defamatory.
The company emphasizes that it is founded and headquartered in California, has hundreds of employees in the state and holds U.S. management accountable for global decisions.
The complaint acknowledges the existence of a separate predecessor company based in China, but says TP-Link Systems and TP-Link Technologies now operate independently.
The company says its US headquarters denies allegations of Chinese government control or origin-based risks.
The document also refers to an earlier agreement in which TP-Link paid Netgear $135 million to settle a patent dispute.
As part of the agreement, Netgear would agree to stop making disparaging statements about TP-Link and its products.
TP-Link claims that statements made during recent investor discussions constitute a breach of this agreement and constitute disparaging and unjust enrichment of the business community.
The seller is seeking damages and a jury trial to remedy the damage to its reputation and the alleged breach of contract.
Media reports suggest that US authorities may be reviewing TP-Link’s products for national security reasons, but no official confirmation has been made public.