Automattic Countersues WP Engine in WordPress Trademark Battle
▼ Summary
– Automattic filed counterclaims alleging WP Engine abused the WordPress trademark and engaged in deceptive marketing without supporting the open-source community.
– Automattic previously took actions including calling WP Engine a “cancer to WordPress,” sending a cease-and-desist letter, and banning it from WordPress.org resources.
– WP Engine shifted to trademark infringement after Silver Lake’s $250 million investment by using names like “The WordPress Technology Company” and launching products with “WordPress” in their titles.
– Automattic claims WP Engine negotiated a licensing deal in bad faith to avoid paying fees that would hurt its earnings and Silver Lake’s expected return on investment.
– The counterclaims allege Silver Lake sought to sell WP Engine for $2 billion but failed, including approaching Automattic, and that WP Engine degraded product quality to cut costs.
In a significant escalation of the ongoing legal dispute over the WordPress name, Automattic has formally countersued WP Engine, alleging systematic trademark abuse and deceptive marketing practices. The legal filing, submitted on Friday, presents Automattic’s side of the conflict that began when WP Engine initiated its own lawsuit last October. Automattic contends that the hosting provider has consistently exploited the WordPress brand without making meaningful contributions to the open-source community that develops and maintains the software.
The conflict intensified last year when Automattic took decisive action against WP Engine, including publicly labeling the company a “cancer to WordPress” and issuing a formal cease-and-desist letter for alleged trademark violations. As tensions mounted, Automattic restricted WP Engine’s access to crucial WordPress.org resources while simultaneously attempting to negotiate a proper licensing arrangement. According to the counterclaims, WP Engine engaged in negotiations without genuine intent to reach an agreement, deliberately prolonging discussions while continuing its questionable practices.
WP Engine’s original lawsuit positioned the company as the target of personal attacks from Automattic founder Matt Mullenweg. However, Automattic’s legal response paints a different picture, suggesting that WP Engine’s approach to the WordPress trademark changed dramatically following a substantial $250 million investment from private equity firm Silver Lake. The filing alleges that WP Engine began aggressively positioning itself as “The WordPress Technology Company” and allowed partners to refer to it as “WordPress Engine,” moves that Automattic considers clear trademark infringement.
The counterclaims detail several specific instances of alleged trademark misuse, including the launch of products branded as “Core WordPress” and “Headless WordPress.” Automattic further challenges WP Engine’s public commitment to dedicate five percent of its resources to supporting the WordPress ecosystem, stating that these promises were never fulfilled despite being used in marketing materials. The legal document characterizes WP Engine’s trademark violations as deliberate and calculated, accusing the company of using licensing discussions as a stalling tactic rather than a sincere effort to resolve the dispute.
Silver Lake’s influence features prominently in Automattic’s legal arguments, with the filing suggesting that the private equity firm’s financial objectives directly influenced WP Engine’s behavior. The counterclaims specifically allege that WP Engine avoided proper trademark licensing because paying fees would have negatively impacted company earnings and overall valuation, thereby reducing Silver Lake’s potential return on investment. This financial pressure allegedly extended to attempts to sell WP Engine at a $2 billion valuation, with the surprising revelation that overtures were made to Automattic itself as a potential buyer.
Beyond trademark issues, Automattic’s filing accuses WP Engine of compromising service quality and customer experience during this period. The counterclaims state that WP Engine removed essential features from its hosting packages in what appears to be a cost-cutting measure, potentially degrading the user experience for WordPress customers who relied on the platform’s previously robust feature set.
(Source: TechCrunch)
