Chinese wireless technology manufacturer Quectel has filed a lawsuit against rival Telit IoT Solutions in the United States, accusing the company of running a smear campaign that damaged its reputation and business relationships.
The lawsuit, filed on October 30 in the US District Court for the Southern District of Florida, alleges that Telit spread misleading claims about the security of Quectel's Internet of Things (IoT) modules. Quectel claims its competitor used concerns about Chinese technology to position itself as a safer Western alternative.
According to the complaint, Telit promoted claims suggesting that the Chinese government could remotely manipulate Quectel's wireless modules. The lawsuit argues that these statements were false and intended to influence customers' purchasing decisions.
Quectel maintained that the Chinese government cannot remotely control its IoT modules sold in the US. It also denies that the devices allow remote data transfers or firmware updates. The complaint alleged commercial disparagement, false advertising, cybersquatting, unfair competition, and deceptive trade practices. Telit had not immediately responded to Reuters' request for comment.
Also Read: Top 10 Emerging IoT Trends for Smart Homes
The dispute comes amid growing scrutiny of Chinese technology companies in the US. In January 2026, the Pentagon added Quectel to a list of companies it alleges support China's military.
The designation has significant business implications, as the US Department of Defense is restricted from procuring goods, services or technology from companies on the list. Quectel filed a separate lawsuit against the Pentagon in May, challenging the designation and arguing that it has caused serious economic damage. That case is still ongoing.
Also Read: T-Echo Card Shows How Solar-Powered Gadgets Can Work Beyond Cellular Networks
Quectel has also accused a Telit employee of registering the domain name quectel.us. According to the complaint, the website redirected visitors to a Wikipedia page containing negative information about the Chinese company. According to Quectel, these actions contributed to customer concerns and harmed its commercial relationships.
The legal dispute highlights how geopolitical concerns are increasingly influencing competition in the global IoT market. Companies supplying connected-device components face growing scrutiny over data security, ownership, and potential government access.
Quectel is seeking legal action against Telit over the alleged conduct. However, the claims have not been established in court, and the case will now proceed through the US legal system.