Netgear's Counterclaim Against TP-Link: 'It's Not American, 13,000 Employees in China and 350 in the USA'

The legal battle between TP-Link and Netgear in the United States enters a new chapter. Netgear has filed a series of counterclaims in the federal court of Delaware in response to the lawsuit initiated by TP-Link in November of last year.

The controversy arises from a dispute over commercial communication and TP-Link's corporate identity. Previously, TP-Link accused Netgear of conducting a campaign aimed at associating its name with fears related to Chinese cyber espionage, also alleging a breach of an agreement reached between the two companies in 2024.

Netgear has completely flipped the perspective and argued in court that the real issue concerns the representation of the rival company. According to the documentation, TP-Link continues to be fundamentally a Chinese company that markets products made in China, despite the corporate reorganization process initiated in the United States.

At the heart of the accusations is TP-Link’s decision to reincorporate in California in 2024. For Netgear, this step did not result in a real separation from the activities of the Chinese company TP-Link Technologies, which later took the name Lianzhou. The company claims that a significant part of the research and development, as well as hardware production, continues to be managed from China under the guidance of the same co-founder.

The documentation presented to the court also cites numbers related to the workforce. According to Netgear, during 2024, TP-Link maintained over 13,000 employees in China, while in the United States, the staff amounts to around 350 units.

The disputes also involve origin indications marked on the products. Netgear argues that the label "Made in Vietnam" used by TP-Link does not fully describe the production chain. According to the allegations, Vietnam is primarily used for the final assembly stages, while about 99.5% of components destined for the U.S. market come from China.

This issue takes on particular significance at a time when U.S. federal authorities are increasing scrutiny of network equipment manufacturers. The investigations concern aspects related to cybersecurity, pricing policies, and potential national security implications.

Making the situation even more delicate is the recent decision by the U.S. Department of Defense, which has added TP-Link Technologies to a list of Chinese companies considered linked to the military apparatus and operating on American soil. Although this classification does not entail a ban on selling consumer products, the decision heightens regulatory pressure on the group.

Meanwhile, TP-Link is seeking an exemption under the new rules of the Federal Communications Commission (FCC). The company argues that TP-Link Systems Inc., based in Irvine, California, should be considered an independent American company.

The new FCC provisions prevent the approval of new consumer routers produced outside the United States, while devices already marketed can continue to receive software updates until 2029. Netgear and Eero, a company owned by Amazon, have already obtained exemptions from the restrictions.

However, TP-Link's troubles are not limited to the dispute with Netgear. In February, the State of Texas also initiated legal action against the company, accusing it of deceptive marketing practices and allowing parties linked to China to access devices used by U.S. consumers. TP-Link denied all accusations, asserting it operates independently of the Chinese government and stores U.S. user data within the United States.

With the new counterclaims, Netgear is seeking financial reimbursement and an order preventing TP-Link from repeating the disputed statements. TP-Link, on the other hand, continues to maintain that the accusations made by the competitor are unfounded, defamatory, and driven by commercial interests. The confrontation between the two manufacturers of routers and network devices thus seems destined to continue for a long time in the courtroom.