Web hosting provider WP Engine has filed a lawsuit against Automattic, the developer of the web content management platform WordPress, and its CEO Matt Mullenweg. WP Engine claims that Automattic and CEO Mullenweg have threatened legal action to force them to pay exorbitant licensing fees. Executives at Automattic and WordPress.com have also confessed that CEO Mullenweg has threatened legal action.
WPENGINE, INC., a Delaware corporation vs. AUTOMATTIC INC., a Delaware corporation; and MATTHEW CHARLESMULLENWEG, an individual,
(PDF file)
https://wpengine.com/wp-content/uploads/2024/10/Complaint-WP-Engine-v-Automattic-et-al.pdf
“Nice Guy” Matt Mullenweg, CEO of WordPress.com Cries Foul and Threatens Me With Legal Action | by Kellie Peterson | Oct, 2024 | Medium
https://medium.com/@kelliepeterson/nice-guy-matt-mullenweg-ceo-of-wordpress-com-cries-foul-and-threatens-me-with-legal-action-f116ac57d862
WP Engine sues WordPress co-creator Mullenweg and Automattic, alleging abuse of power | TechCrunch
https://techcrunch.com/2024/10/02/wp-engine-sues-automattic-and-wordpress-co-founder-matt-mullenweg/
The issue began when CEO Mullenweg specifically criticized WP Engine, a provider of WordPress-focused services, during a user event at the end of September 2024.
CEO Mullenweg argued that WP Engine has not contributed to the WordPress development community, and that its modified WordPress services are being marketed as genuine WordPress. WP Engine countered that this was untrue, but Automattic notified WP Engine to stop using the WordPress trademark. In addition, Automattic announced that it would block WP Engine’s access to wordpress.org.
Automattic explains that the WordPress trademark is owned by the WordPress Foundation, and the commercial use rights are owned by Automattic.
In response to Automattic and CEO Mullenweg’s actions, WP Engine said, ‘CEO Mullenweg’s actions over the past 10 days expose serious conflicts of interest and governance issues that, if left unchecked, risk eroding trust. We have no choice but to pursue these allegations to protect our employees, agency partners, customers, and the broader WordPress community.’
Matt Mullenweg and Automattic’s self-proclaimed scorched earth campaign against WP Engine has harmed not just our company, but the entire WordPress ecosystem. The symbiotic relationship between WordPress, its community and the businesses that invest millions to support WordPress…
— WP Engine (@wpengine) October 3, 2024
WP Engine claims that Automattic and Mullenweg demanded tens of millions of dollars in royalties for the use of the WordPress trademark, threatening legal action if WP Engine refused to pay. WP Engine then allegedly made statements at user events, blocked access to wordpress.org, spread false statements about WP Engine on social media, and encouraged WP Engine customers to terminate their contracts. WP Engine is seeking an injunction to stop the actions and damages, claiming that these actions violate laws such as attempted extortion, defamation, and unfair competition.
Automattic acknowledges that it had asked WP Engine to pay royalties, and claims that it had been negotiating royalties for several years, but that communication from WP Engine ceased around September 2024.
Kelly Peterson, an executive at WordPress.com and Automattic, tweeted, ‘There are rumors that employees who don’t agree with CEO Mullenweg’s actions are being urged to resign with generous severance packages. This is an opportunity, and a good time to search for talent on LinkedIn. If there are any Automattic employees who want to quit but can’t find a new job, please contact us and we’ll help you.’ He then confessed that CEO Mullenweg sent him a direct mail saying, ‘I told you to quit,’ and hinted at legal action.
‘Mallenweg was kind to me and to many others, but at the same time he was contemptuous, insulting and demoralizing. I, my subordinates and colleagues were all at the mercy of his moods and whims,’ Peterson said. ‘Mallenweg has used his power irresponsibly and controlled Automattic, WordPress and wordpress.org. For the sake of WordPress, the community, the health of the broader ecosystem, Automattic employees and your own investment, I ask that you take action and hold Matt accountable for his actions,’ he said, appealing to investors.
