WP Engine Sues WordPress Co-Founder Matt Mullenweg and Automattic, Alleging Extortion

WP Engine, a leading managed web hosting provider, has filed a federal lawsuit against Matt Mullenweg, the co-founder of WordPress, and Automattic, the parent company behind WordPress.com. The lawsuit accuses Mullenweg and Automattic of attempted extortion, trademark infringement, and a series of other serious claims. WP Engine is seeking legal relief to protect its business and the broader WordPress ecosystem, which it argues has been harmed by Mullenweg's actions.

Allegations and Core of the Lawsuit

The 98-page lawsuit, filed in U.S. federal court, accuses Mullenweg of abusing his power and failing to uphold the values that have made WordPress a trusted open source platform. WP Engine contends that Mullenweg and Automattic have engaged in a "scorched earth" campaign against them, resulting in significant damage to the company and its partnerships.

The suit lists 11 separate allegations, including:

1. Intentional Interference with Contractual Relations
2. Intentional Interference with Prospective Economic Relations
3. Violations under the Computer Fraud and Abuse Act
4. Attempted Extortion
5. Unfair Competition
6. Promissory Estoppel
7. Libel and Slander
8. Declaratory Judgments on Non-Infringement and Non-Dilution

Broken Promises and Trademark Disputes

Central to the lawsuit is WP Engine’s argument that Mullenweg has failed to keep promises made about the open source nature of WordPress. The company claims that the freedom to use WordPress—originally promoted as accessible to all—has been undermined by demands for licensing fees, which WP Engine argues are unfounded. The lawsuit highlights that WP Engine, along with many other businesses, uses the term "WordPress" to describe its services legally and ethically.

According to WP Engine, Mullenweg praised the company as recently as March 2023 during the DE{CODE} developer conference, even though the company’s use of the contested terms was already in place. The lawsuit also details public statements where Mullenweg acknowledged WP Engine's use of certain terms but took no legal action until recently.

Accusations of Misleading Statements and Secret Trademark Transfers

Another key claim in the lawsuit is that Mullenweg misled the public and the government about the ownership and control of WordPress trademarks. WP Engine accuses Mullenweg of falsely transferring WordPress trademarks from Automattic to the WordPress Foundation, a nonprofit entity, only to secretly transfer them back to Automattic through an exclusive sublicensable license. This arrangement, according to WP Engine, was not disclosed in tax filings with the State of California or the IRS, constituting a violation of federal tax laws.

The lawsuit presents evidence that, for years, Mullenweg failed to disclose his financial interest in Automattic while overseeing the WordPress Foundation. WP Engine claims this constitutes self-dealing, and Mullenweg's control over the WordPress Foundation has been used to further Automattic’s commercial interests, rather than safeguarding the open source community.

Implications for the WordPress Ecosystem

The fallout from the lawsuit has already begun. Automattic’s Executive Director for Open Source, Josepha Haden Chomphosy, has resigned. WP Tavern journalist Jeff Chandler confirmed this in a post on social media, noting that Haden Chomphosy is expected to issue a formal statement soon. Her departure may signal deeper challenges within Automattic as this legal battle unfolds.

Broader Impact and Concerns

WP Engine’s lawsuit raises concerns about the future of WordPress as an open source project and its relationship with commercial entities that invest heavily in the platform. WP Engine has invested millions of dollars in the WordPress ecosystem and feels betrayed by what it describes as Mullenweg's "petulant whims," which threaten the company and its partners. This legal conflict could lead to wider questions about governance, transparency, and the balance of power within the WordPress ecosystem.

As the lawsuit progresses, businesses that rely on WordPress will be watching closely, as its outcome could shape the future of the platform and its relationship with the community that has long depended on its open source model.