Matt Mullenweg v. WP Engine escalates
Update, September 26, 2024: WordPress.org has banned websites hosted on WP Engine from accessing its resources. As someone put it on X, this is Matt Mullenweg dropping a giant turd into the laps of millions of WordPress users. I can't recommend this software any more in good conscience.
The Matt Mullenweg v. WP Engine dispute seems to be escalating, which is a bit of a surprise because it was so ill-founded to begin with. Yet the escalation has also been exponential.
Mullenweg published his post disparaging WP Engine on the WordPress.org site (from where you can download the open source WordPress CMS) on September 21.
Vasudevan Mukunth
On September 23, WP Engine said it had sent WordPress.com parent company and WordPress lead developer Automattic, whose CEO is Mullenweg, a cease and desist letter. Excerpt:
Stunningly, Automattic’s CEO Matthew Mullenweg threatened that if WP Engine did not agree to pay Automattic – his for-profit entity – a very large sum of money before his September 20th keynote address at the WordCamp US Convention, he was going to embark on a self-described “scorched earth nuclear approach” toward WP Engine within the WordPress community and beyond. When his outrageous financial demands were not met, Mr. Mullenweg carried out his threats by making repeated false claims disparaging WP Engine to its employees, its customers,and the world. Mr. Mullenweg has carried out this wrongful campaign against WP Engine in multiple outlets, including via his keynote address, across several public platforms like X, YouTube, and even on the Wordpress.org site, and through the WordPress Admin panel for all WordPress users, including directly targeting WP Engine customers in their own private WordPress instances used to run their online businesses.
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Later on the same day, Automattic sent a cease and desist letter of its own to WP Engine. Excerpt:
As you know, our Client owns all intellectual property rights globally in and to the world-famous WOOCOMMERCE and WOO trademarks; and the exclusive commercial rights from the WordPress Foundation to use, enforce, and sublicense the world-famous WORDPRESS trademark, among others, and all other associated intellectual property rights.We are writing about WP Engine’s web hosting and related services that improperly use our Client’s WORDPRESS and WOOCOMMERCE trademarks in their marketing.We understand that our Client has contacted you about securing a proper license to use its trademarks, yet no such agreement has been reached. As such, your blatant and widespread unlicensed use of our Client’s trademarks has infringed our Client’s rights and confused consumers into believing, falsely, that WP Engine is authorized, endorsed, or sponsored by, or otherwise affiliated or associated with, our Client. WP Engine’s unauthorized use of our Client’s trademarks also dilutes their rights, tarnishes their reputation, and otherwise harms the goodwill they have established in their famous and well-known trademarks, and has enabled WP Engine to unfairly compete with our Client, leading to WP Engine’s unjust enrichment.
Now it's a trademark dispute. Automattic is alleging people at large are confusing WP Engine with WordPress itself and that that's leading to loss of revenue for Automattic. Hang on to this thought while we move on to the next detail. At 10.34 pm IST on September 4, Mullenweg shared this tidbit in a Reddit comment:
[WP Engine] had the option to license the WordPress trademark for 8% of their revenue, which could be delivered either as payments, people (Five for the Future .org commitments), or any combination of the above.
Put all these details together and we understand Mullenweg is alleging via Automattic that people are confusing WP Engine with WordPress itself to Automattic's detriment, that WP Engine has wrongfully used the WordPress trademark, that what WP Engine is selling isn't WordPress but something it has reportedly "butchered", and that WP Engine's enrichment is unjust.
I think it's starting to stink for Mullenweg. As detailed in the previous post, WP Engine didn't "butcher" WordPress. In fact they didn't change anything about WordPress's core composition. They turned off a setting, didn't hide it, and offered a way to get around it by other means. WordPress is open source software provided under a GPL license, which means others are allowed to modify it (and subsequently avail it under the same license). So even if WP Engine modified WordPress — which it didn't — it would've been operating within its rights.
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Second, WP Engine was founded in 2010. Why is Automattic alleging a trademark violation after 14 years of being okay with it? Even if consumers are currently confusing WP Engine with WordPress itself — which I doubt — that Automattic didn't pursue a legal dispute in all this time is very fishy. It also creates new uncertainty for all the many other WordPress hosting companies that have "WP" in their names. On a related note, WP Engine is selling WordPress hosting and not WordPress itself as well as claims to have emails from Automattic staff saying using the "WP" short form is okay.
Another point of note here is whether 'WP' is covered by trademark. At some point in the recent past, the wordpressfoundation.org website updated its 'Trademark Policy' page to include an answer as well as some gratuitous remarks:
The abbreviation “WP” is not covered by the WordPress trademarks, but please don’t use it in a way that confuses people. For example, many people think WP Engine is “WordPress Engine” and officially associated with WordPress, which it’s not. They have never once even donated to the WordPress Foundation, despite making billions of revenue on top of WordPress.
Third, Mullenweg's demand that WP Engine cough up 8% of their revenue amounts to a demand for $40 million (Rs 334.5 crore). Considering Automattic has now pinned this demand to the wobbly allegation of wrongful trademark use, WP Engine seems increasingly in the right to dispute and not entertain his demands. Moreover, WP Engine's lawyers' letter suggests Mullenweg gave WP Engine a very small window within which to comply with this demand and, for added measure, allegedly threw in a threat. But then at 10.38 pm on September 24, Mullenweg said this on Reddit:
I would have happily negotiated from there, but they refused to even take a call. Their entire strategy has been to obscure and delay, which they tried to do on Friday. "Can we get the right folks together early next week?" They've been stringing us along for years, I'm the dummy for believing that they actually wanted to do anything. But making it right, now.
The reply to this comment by Reddit user u/ChallengeEuphoric237 is perfect:
If they don't believe they needed to pay, then why would they?
1/ If the fees were for the trademark, why weren't they going to the WordPress Foundation instead of Automattic?
2/ Why do they need to license the WordPress trademark? Stating they allow hosting as a product isn't a violation of trademark law, neither is using WP. You guys used to be an investor in the company for crying out loud.
WordPress and Automattic seem incredibly petty in all of this. Why did you *need* to do it during the keynote? Why did you *need* to make a huge stink at the booth? If this was a legal issue, let the lawyers sort it out instead of dragging the community through the mud. Everyone expected much more from you. I don't use WP Engine's products, but if someone came to me trying to extort 8% of my revenue on some flimsy trademark issue, I wouldn't be very responsive either.
"Can we get the right folks together early next week?"
Did you honestly expect them to agree to a nearly 40 million dollar annual charge via text message when you literally gave them what seems like an hour notice right before your keynote? Would you agree to that? I'm no lawyer, but that whole exchange seems like an exercise in extortion - threatening to destroy someones reputation unless they agree to something monetarily, which is a felony.
Let's see what the courts say, but you've lost a ton of clout in the community over this.
The subtext of Mullenweg's September 21 post seemed to be that private equity is cutting costs in a way that's eating into the aspirations and dues of open source software development. Then again, as many observers in the sector have said, this couldn't be the real issue because private equity is almost everywhere in the WordPress hosting space and singling out WP Engine made little sense. So the sub-subtext seemed to be that Mullenweg was unhappy about WP Engine eating into the revenue streams of WordPress.com and WordPress VIP (Automattic's elite hosting service). But after the events of the three days that followed, that sub-subtext seems likelier to be the whole issue.
On a final note, many people are kicking back with 🍿 and speculating about how this dispute could escalate further. But it's difficult for me personally to be entertained by this. While Mullenweg's September 21 post didn't in hindsight do a good job of communicating what his real argument was, he did suggest there was a problem with a model in which for-profit entities could springboard off the efforts of open-source communities that have volunteered their time and skills without the entities giving back. But dovetailing to u/ChallengeEuphoria237's concluding remark, conversations about that issue vis-à-vis WP Engine are now more unlikely to happen than they were before Mullenweg launched into this "making it right" campaign.
