WP Engine Alleges Automattic’s Aggressive Tactics in WordPress Trademark Dispute
In a significant escalation of the ongoing legal battle between WP Engine and Automattic, WP Engine has filed an amended complaint introducing new allegations against Automattic and its CEO, Matt Mullenweg. The dispute centers on the use of the WordPress trademark and the financial obligations associated with it.
Background of the Dispute
The conflict began in October 2024 when WP Engine accused Automattic and Mullenweg of defamation and abuse of power. Automattic responded with counterclaims, alleging that WP Engine was misusing the WordPress trademark and engaging in deceptive marketing practices. At the core of the disagreement is Mullenweg’s assertion that WP Engine is profiting from the open-source WordPress project without adequately contributing back to the community. He demanded that WP Engine pay 8% of its monthly gross revenues as a royalty fee for using the WordPress brand.
New Allegations in the Amended Complaint
In the latest filing, WP Engine claims that Mullenweg intended to target ten different hosting companies with similar royalty payment demands. The complaint suggests that Automattic has already secured agreements with some companies, such as Newfold, which owns hosting providers like Bluehost and HostGator, to pay for the use of its trademarks. The names of other targeted hosts were redacted in the complaint but were referenced through email conversations between these companies and Mullenweg.
Additionally, WP Engine alleges that Mullenweg attempted to pressure payment processor Stripe into canceling its contract with WP Engine. This alleged interference occurred after WP Engine had initiated its lawsuit against Automattic.
Questioning the Royalty Fee
WP Engine also challenges the basis of the 8% royalty fee demanded by Mullenweg. They argue that this rate appears arbitrary and cite Mullenweg’s comments at TechCrunch Disrupt 2024, where he indicated that the fee was based on what he believed WP Engine could afford to pay. Mullenweg stated that an 8% fee would amount to approximately $32 million, leaving WP Engine still free cash-flow positive. He described this figure as a result of a business analysis and negotiations over the preceding 18 months.
Aggressive Language and Tactics
The amended complaint highlights aggressive language allegedly used by Mullenweg towards WP Engine. Internal correspondence from Automattic reportedly includes statements like, If they don’t take the carrot, we’ll give them the stick, suggesting a coercive approach to securing compliance. Furthermore, Mullenweg is alleged to have used the term nuclear war to describe his strategy against WP Engine’s resistance.
Automattic’s Response
In response to the new filing, Automattic issued a statement dismissing the allegations as a rehash of previous claims. They assert that the lawsuit is not progressing and that WP Engine is attempting to portray robust competition as something nefarious. Automattic expresses confidence that the courts will continue to reject WP Engine’s theories.
Implications for the WordPress Community
This legal battle has significant implications for the broader WordPress community. WordPress powers a substantial portion of the internet, and the outcome of this dispute could influence how companies interact with the open-source project and its trademarks. The allegations of aggressive tactics and financial demands raise questions about the balance between open-source principles and commercial interests within the WordPress ecosystem.
Conclusion
The ongoing litigation between WP Engine and Automattic underscores the complexities of managing trademarks and financial contributions in open-source projects. As the case progresses, it will be crucial to monitor how the courts address these allegations and what precedents may be set for the future of open-source software governance.
