Quectel accuses Telit of smear campaign in US lawsuit

Chinese wireless-device maker Quectel has sued rival Telit in the United States, alleging that a campaign of false and misleading claims damaged its customer relationships and business. The allegations are contained in a complaint filed in the Southern District of Florida and have not been tested at trial.

Claims over product safety and competition

Quectel alleges that Telit promoted claims that Quectel's Internet of Things modules could be manipulated by the Chinese government. The complaint says Telit presented itself to customers as a safer “Western” alternative while exploiting concerns about Chinese technology companies. Telit IoT Solutions is the named defendant; Telit, which operates as Telit Cinterion, did not immediately respond to Reuters' request for comment.

Quectel says its US-sold modules cannot be remotely controlled by the company or the Chinese government, cannot send or receive data remotely, and cannot receive firmware updates over the air. Those statements are allegations made in the complaint, not findings by the court.

Domain and Pentagon-list dispute

The lawsuit accuses a Telit employee of registering the quectel.us domain and says the domain was used to redirect visitors to a disparaging Wikipedia page. Quectel has brought claims including commercial disparagement, false advertising, cybersquatting, unfair competition, and deceptive and unfair trade practices.

The dispute follows a separate legal fight over Quectel's addition by the US Department of Defense to a list of companies that the department says work with China's military. Reuters reported that the company was added in January and sued the Pentagon in May, denying the allegation and saying the listing was causing serious economic harm. That case remained ongoing in the sources reviewed for this article.

What happens next

Quectel said in its court filing that the alleged campaign harmed sales, customer relationships, reputation, and goodwill. The company is seeking legal remedies through the Florida case. The court docket and the company's announcement confirm that the proceeding is at an early stage; neither source establishes whether Quectel's allegations will prevail.

Sources

• Reuters: Chinese wireless firm Quectel accuses Telit of smear campaign in US lawsuit
• AFP-hosted Quectel announcement: Quectel sues Telit, alleging false statements, cybersquatting and unfair competition
• CourtListener docket: Quectel Wireless Solutions Co., Ltd. v. Telit IoT Solutions Inc.
• CourtListener docket: Quectel Wireless Solutions Co., Ltd. v. United States Department of Defense
• Quectel: innovation headquarters and smart factory announcement

Image: Telit Cinterion branding from the company's February 2023 brand announcement. Image: Telit Cinterion.