Automattic Files Counterclaims Against Wp Engine In Wordpress Lawsuit, Alleging Trademark Misuse

On Friday, WordPress-maker Automattic filed its counterclaims successful nan lawsuit initiated by hosting institution WP Engine successful October 2024, which had accused Automattic and its CEO Matt Mullenweg of defamation and maltreatment of power. Automattic believes that WP Engine has been abusing nan WordPress trademark and has engaged successful deceptive trading practices, without decently giving backmost to nan unfastened root community.

As a result, Automattic took action against WP Engine past year, which included calling nan hosting supplier a “cancer to WordPress” and sending it a cease-and-desist missive claiming WP Engine had breached its trademark usage rules. As nan conflict continued, Automattic banned WP Engine from accessing WordPress.org resources and attempted to discuss a licensing woody pinch nan host. Automattic says that nan institution strung it along, negotiating successful bad faith.

WP Engine yet sued Automattic, portraying itself arsenic nan unfortunate of Mullenweg’s attacks. But successful Automattic’s telling of events, aft nan backstage equity patient Silver Lake invested $250 cardinal in, WP Engine shifted from adjacent usage to trademark infringement by calling itself “The WordPress Technology Company” and letting its partners mention to it arsenic “WordPress Engine.”

Automattic notes that nan hosting institution besides launched products pinch names for illustration “Core WordPress” and “Headless WordPress,” and claimed to its customers that it had committed 5% of its resources to support nan WordPress ecosystem. Automattic says it ne'er kept those promises. Automattic alleges that nan trademark infringement was deliberate, saying WP Engine only “pretended to prosecute successful licensing discussions, but really delayed and negotiated successful bad faith.”

Silver Lake plays a cardinal domiciled successful nan counterclaims, which connote that nan interests of nan backstage equity patient guided overmuch of WP Engine’s behavior. In particular, nan counterclaims allege that WP Engine engaged successful trademark violations because paying licensing fees would effect nan company’s net and valuation, and therefore, Silver Lake’s expected return.

The counterclaims besides allege that Silver Lake was seeking to offload WP Engine astatine a $2 cardinal valuation, but couldn’t find a buyer. Notably, nan filing says that this included “overtures to Automattic.”

Automattic besides claims that WP Engine degraded nan user acquisition and merchandise value successful an effort to trim costs during this clip by removing basal features.