Tension between WordPress co-founder Matt Mullenweg and hosting provider WP Engine has been ongoing for a long time. This time, Automattic has come forward with a new countersuit in response to the lawsuit filed by WP Engine. The lawsuit states that WP Engine used the WordPress brand without permission and did not fulfill its promise of support to the open source community. All these allegations have made the legal dispute between the two parties much more complicated.
According to Automattic, the process took a different direction with private equity firm Silver Lake’s $250 million investment in WP Engine. It is claimed that after this investment, the company turned its focus to increasing profits rather than community contribution. Mullenweg’s legal team argues that WP Engine is using the phrase “WordPress Technology Company” to turn the brand into a tool for commercial gain. In addition, it is stated that some business partners were allowed to call the company “WordPress Engine”. Automattic emphasizes that this situation harms the brand’s recognition and creates confusion among users.
It is desired to preserve the open source culture in the WordPress project
These allegations are attributed to Automattic’s effort to protect not only its trademark rights, but also its open source culture. Mullenweg’s lawyers argue that WP Engine failed to fulfill its commitment to devote five percent of its resources to the WordPress project. Failure to make this contribution creates a negative picture for the sustainability of the community. Although WP Engine denies these claims, the issue of balance between open source principles and commercial purposes has been reopened for discussion. Both parties anticipate that this process will take a long time.
Automattic’s case file states that WP Engine was offered a “fair brand license agreement”; However, it is stated that the company deliberately postponed these negotiations. Allegedly, WP Engine did not agree to a real agreement because it thought that licensing negotiations would reduce its revenues. In addition, it is also included in the file that Silver Lake plans to sell WP Engine with a valuation of $ 2 billion. This sales plan is seen as an important element explaining the delays in licensing. Automattic claims that these delays were made deliberately.
Despite everything, WP Engine takes a determined stance against these claims. A company spokesperson states that the WordPress brand has long been used to describe open source software. Describing this usage as a common practice throughout the industry, the spokesperson argues that Automattic’s accusations are unfounded. According to the company’s statement, current legal regulations consider this use within the scope of a fair trademark right. Despite this, the litigation process brought to the agenda again the extent to which the boundaries of the brand should be drawn.
The first lawsuit filed by WP Engine was harshly critical of Mullenweg’s management style. In the lawsuit, Mullenweg was accused of “abuse of power”, “blackmail” and “greed”. Allegedly, Automattic demanded eight percent of its monthly income from WP Engine as royalties. This process caused great unrest within the company. At that time, over 100 Automattic employees resigned voluntarily, which had a serious impact on the corporate structure.
Mullenweg’s new countersuit turns the tables. Now the accusations come from WP Engine, not Automattic. This time the focus is on brand integrity and violation of open source contribution. Automattic side emphasizes that this fight for the future of WordPress is for the benefit of the community. Besides all this, the outcome of the case also triggers a new debate about the relations between open source projects and private companies.