WP Engine Files Lawsuit Against WordPress Founder Matt Mullenweg and Automattic

In a dramatic escalation of tensions within the WordPress ecosystem, web hosting giant WP Engine has filed a lawsuit against Automattic and WordPress co-founder Matt Mullenweg, alleging extortion and abuse of power. The legal action follows weeks of public clashes over trademark disputes and contributions to the open-source WordPress project.

Key Allegations in the Lawsuit

  • Breach of open-source principles: WP Engine claims Automattic failed to uphold promises of running WordPress as a truly open-source project
  • Conflicts of interest: The filing accuses Mullenweg of governance issues regarding his control of WordPress Foundation and WordPress.org
  • Extortion claims: WP Engine alleges Mullenweg demanded excessive royalty payments (8% of gross revenue) for trademark usage

“Matt Mullenweg’s recent actions reveal serious conflicts that threaten the WordPress community’s trust,” WP Engine stated. “We’re compelled to act to protect our partners, customers, and the broader ecosystem.”

Timeline of the WordPress Hosting Conflict

September 2024: The Dispute Escalates

  1. September 22: Mullenweg labels WP Engine “the Cancer of WordPress” and criticizes its private equity backing
  2. September 23: WP Engine issues a cease-and-desist letter demanding retraction of Mullenweg’s statements
  3. September 25: Automattic counters with its own legal notice alleging trademark infringement

The WordPress.org Ban and Temporary Reprieve

  • September 25: Mullenweg blocks WP Engine from accessing WordPress.org resources (plugins, themes, updates)
  • September 27: Temporary access restored until October 1

The Controversial Licensing Proposal

Automattic’s September 20 term sheet revealed:

  • 8% royalty fee on WP Engine’s gross revenue for trademark usage
  • Alternative option: Commit 8% equivalent in employee contributions to WordPress core
  • Restrictions: Prohibited forking Automattic/WooCommerce plugins

WP Engine rejected these terms, leading to the current legal battle. The case, filed in California, could have significant implications for:

  • Open-source governance
  • Trademark usage in open-source projects
  • Corporate relationships within the WordPress ecosystem

For updates on this developing story, follow @ivanmehta on Signal or email [email protected]


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