The open-source platform WordPress is caught in the middle of a legal dispute between Automattic, founder Mark Mullenweg’s company, and hosting service provider WP Engine. The dispute between the two sides, which has been offering free hosting to website enthusiasts for years, is deepening with lawsuits.
Uncertainty persists at WordPress
As the first step in the crisis, WP Engine filed a lawsuit accusing Mullenweg of abuse of power, blackmail, and greed. The company alleged that Automattic demanded royalties equal to 8 percent of their monthly revenue.
Mullenweg’s aggressive behavior during this period led to the resignation of more than 100 Automattic employees. WP Engine obtained a temporary injunction from the court in this case.
Immediately following this lawsuit, Automattic filed a lawsuit against WP Engine. Automattic alleges that after Silver Lake took control of WP Engine with a $250 million investment, the company began promoting itself as a “WordPress Technology Company” to inflate its value and plan a rapid exit.
Automattic alleges that WP Engine deliberately confused its brand by allowing its partners to use the name “WordPress Engine.” It also alleges that the company’s use of products like “Core WordPress” and “Headless WordPress” was intended to mislead users.
Automattic’s counterclaim alleges that it attempted to reach an agreement with WP Engine regarding a fair trademark license, but WP Engine only pursued these negotiations to stall. During this process, Silver Lake attempted to sell WP Engine at a $2 billion valuation and approached Automattic about the sale.
Automattic also alleges that WP Engine failed to fulfill its contractual commitment to contribute to the open-source WordPress project. On the other hand, a spokesperson for WP Engine stated that they use the WordPress brand to refer to open source software and that this is fully compliant with established industry practices and trademark law.
