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WP Engine sues Automattic and Matt Mullenweg, alleging extortion and abuse of power

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Web hosting provider WP Engine has escalated its dispute with Automattic and WordPress co-founder Matt Mullenweg, filing a lawsuit in California accusing them of extortion, power abuse, and failure to uphold the WordPress project’s open-source principles.

The legal action follows two weeks of intensifying conflict over trademark infringement and contributions to the open-source WordPress community, raising concerns about governance and control within the ecosystem.

As reported by TechCrunch, WP Engine’s lawsuit claims that Automattic, led by Mullenweg, violated WordPress’s foundational promises by exerting undue control over the open-source project.

WP Engine alleges that Mullenweg has long obscured the true level of control he exerts over WordPress.org and the WordPress Foundation. It accuses him of betraying the open-source philosophy by attempting to coerce payments and labour contributions from companies using WordPress and WooCommerce trademarks.

The conflict began when Mullenweg publicly criticised WP Engine for allegedly infringing on the WordPress and WooCommerce trademarks, referring to the company as the “cancer of WordPress.” He also targeted WP Engine’s private equity partner, Silver Lake, accusing them of disregarding the interests of the open-source community.

In response, WP Engine sent a cease-and-desist letter, demanding Mullenweg retract his statements. However, Automattic countered with its cease-and-desist notice, accusing WP Engine of violating WordPress and WooCommerce trademarks.

On September 25, Mullenweg took a more drastic step, banning WP Engine from accessing WordPress.org resources, including essential plug-ins and themes, preventing WP Engine customers from updating their WordPress installations.

After two days, Mullenweg temporarily lifted the ban until October 1, providing a bride reprieve as negotiations continued.

Amid the legal and public clashes, Automattic published a proposed seven-year term sheet, originally sent to WP Engine on September 20. The proposal required WP Engine to pay 8% of its gross monthly revenue as a royalty for using WordPress and WooCommerce trademarks.

Alternatively, WP Engine could meet its obligation by dedicating 8% of its workforce to contribute to developing WordPress core features or through a mix of financial payments and labour hours.

The terms also included a probationary clause, preventing WP Engine from forking plug-ins or extensions from Automattic and WooCommerce, a move WP Engine saw as restrictive and detrimental to the broader WordPress ecosystem. WP Engine ultimately rejected these terms, leading to the current lawsuit.

As the case progresses, the tension between corporate interests and open-source ideals will likely remain at the forefront of this dispute.

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Kumar Hemant

Kumar Hemant

Deputy Editor at Candid.Technology. Hemant writes at the intersection of tech and culture and has a keen interest in science, social issues and international relations. You can contact him here: kumarhemant@pm.me

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