Automattic planned to target 10 competitors with royalty fees, WP Engine claimsin new filing

WP Engine filed an amended complaint claiming Automattic's Matt Mullenweg is targeting 10 competitors for trademark royalty fees. WP Engine alleges Mullenweg pressured Stripe to cancel their contract and set an arbitrary 8% royalty fee. The legal feud, ongoing since October 2024, highlights accusations of defamation, trademark abuse, and aggressive tactics by Mullenweg, who argues WP Engine profits without contributing to WordPress.

Key Points

• WP Engine claims Automattic planned to target 10 hosting companies for royalty fees.
• Mullenweg allegedly pressured Stripe to cancel WP Engine's contract.
• WP Engine argues the 8% royalty demand is arbitrary and was based on Mullenweg’s estimates.
• The lawsuit originated in October 2024, focusing on defamation and power abuse.
• Automattic's counterclaims accuse WP Engine of trademark abuse and deceptive practices.
• The latest filing includes aggressive language from Mullenweg, threatening WP Engine's business.

Relevance

• This legal dispute reflects broader tensions in the open-source community over profit-sharing.
• The trend towards monetizing open-source software is increasing, as seen with other tech firms.
• As of 2025, many IT companies are navigating similar legal landscapes involving trademark and licensing disputes.

The ongoing legal battle between WP Engine and Automattic underscores critical issues of trademark use, open-source ethics, and competitive practices in the tech industry, mirroring a growing trend in tech-related legal disputes.