WP Engine hits back after Automattic CEO calls it 'cancer'
(2024/09/25)
- Reference: 1727220493
- News link: https://www.theregister.co.uk/2024/09/24/wp_engine_claims_automattic_ceo/
- Source link:
Updated WordPress hosting service WP Engine on Monday sent a cease and desist letter to WordPress maker Automattic, to force the latter's CEO Matthew Mullenweg to stop making allegedly false and misleading claims about WP Engine following a purported trademark license demand.
The [1]letter [PDF] claims Mullenweg called WP Engine a "cancer" and privately threatened to disparage the company if it failed to pay Automattic tens of millions of dollars annually for the use of the 'WordPress' trademark – an amount the letter characterizes as an "astronomical and extortionate monetary demand."
WP Engine reckons it doesn't need to license the word "WordPress," as its use of the mark is covered by fair use.
[2]
"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," the letter from WP Engine reads
[3]
[4]
WordPress is a popular open source content management system used by [5]more than 65 million websites. Mullenweg is one of the two creators of the software and also CEO of Automattic, which operates WordPress.com, a service for hosting WordPress websites.
WP Engine also offers hosting for WordPress websites, but as Mullenweg argued in [6]a blog post last week, "WP Engine is not WordPress." He claims that WP Engine, [7]funded by venture capital firm Silver Lake, is hollowing out the open source world by profiting from WordPress without giving back to the community.
[8]
Mullenweg contends that WP Engine, while making "about half a billion in revenue on top of WordPress," [9]sponsors developers to spend 40 hours total a week working on the development of WordPress. Automattic’s sponsorship sees developers spend [10]almost 4,000 hours per week . The Automattic CEO also argues that WP Engine's decision to disable WordPress revisions by default reflects the company's disinterest in customer content.
"They disable revisions because it costs them more money to store the history of the changes in the database, and they don’t want to spend that to protect your content," Mullenweg wrote.
[11]As IBM pushes for more automation, its AI simply not up to the job of replacing staff
[12]How to spot a North Korean agent before they get comfy inside payroll
[13]Look! About chest high! Is it a pallet? Is it a drone? No, it's a Palletrone
[14]Heart of glass: Human genome stored for 'eternity' in 5D memory crystal
Mullenweg reiterated that point at WordCamp US 2024 last week. "Silver Lake doesn't give a dang about your open source ideals," he [15]said . "It just wants return on capital."
Silver Lake doesn't give a dang about your open source ideals. It just wants return on capital.
Automattic did not immediately respond to a request for comment.
WP Engine wants Mullenweg to stop slamming the company and claims the criticism follows from its refusal to agree to millions in annual payments described in the letter as "ostensibly … for a 'license' to use certain trademarks like WordPress, even though WP Engine needs no such license."
According to the letter, WP Engine is allowed to use the WordPress trademark under not only fair use but also the WordPress Foundation's [16]trademark policy , despite the policy's explicit mention of WP Engine for having "never once even donated to the WordPress Foundation, despite making billions of revenue on top of WordPress."
[17]
The WP Engine letter goes on to challenge Mullenweg's assertions about community contributions, trademark infringement, and other claims, while directing Automattic to preserve documents in case of litigation. It further hints at a potential legal claim tortious interference and unfair business practices, but no actual complaint has yet been filed.
WP Engine did not immediately respond to a request for comment. ®
Updated to add
On Tuesday evening, Automatic published a [18]cease-and-desist letter that its legal representative sent to WP Engine on Monday. The letter demands that WP Engine stop using its trademarks and also directs the biz to retain documents for possible litigation.
“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,” the letter states.
Get our [19]Tech Resources
[1] https://wpengine.com/wp-content/uploads/2024/09/Cease-and-Desist-Letter-to-Automattic-and-Request-to-Preserve-Documents-Sent.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZvOK55dnNFiKilPfb6fAXAAAAEc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZvOK55dnNFiKilPfb6fAXAAAAEc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZvOK55dnNFiKilPfb6fAXAAAAEc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://trends.builtwith.com/cms/WordPress
[6] https://wordpress.org/news/2024/09/wp-engine/
[7] https://wpengine.com/blog/milestone-announcement/
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZvOK55dnNFiKilPfb6fAXAAAAEc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://wordpress.org/five-for-the-future/pledge/wp-engine/
[10] https://wordpress.org/five-for-the-future/pledge/automattic/
[11] https://www.theregister.com/2024/09/24/ibm_layoffs_ai_talent/
[12] https://www.theregister.com/2024/09/24/mandiant_north_korea_workers/
[13] https://www.theregister.com/2024/09/24/palletrone/
[14] https://www.theregister.com/2024/09/21/human_genome_5d_memory_crystal/
[15] https://youtu.be/fnI-QcVSwMU?feature=shared&t=681
[16] https://wordpressfoundation.org/trademark-policy/
[17] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZvOK55dnNFiKilPfb6fAXAAAAEc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[18] https://automattic.com/2024/09/25/open-source-trademarks-wp-engine/
[19] https://whitepapers.theregister.com/
The [1]letter [PDF] claims Mullenweg called WP Engine a "cancer" and privately threatened to disparage the company if it failed to pay Automattic tens of millions of dollars annually for the use of the 'WordPress' trademark – an amount the letter characterizes as an "astronomical and extortionate monetary demand."
WP Engine reckons it doesn't need to license the word "WordPress," as its use of the mark is covered by fair use.
[2]
"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," the letter from WP Engine reads
[3]
[4]
WordPress is a popular open source content management system used by [5]more than 65 million websites. Mullenweg is one of the two creators of the software and also CEO of Automattic, which operates WordPress.com, a service for hosting WordPress websites.
WP Engine also offers hosting for WordPress websites, but as Mullenweg argued in [6]a blog post last week, "WP Engine is not WordPress." He claims that WP Engine, [7]funded by venture capital firm Silver Lake, is hollowing out the open source world by profiting from WordPress without giving back to the community.
[8]
Mullenweg contends that WP Engine, while making "about half a billion in revenue on top of WordPress," [9]sponsors developers to spend 40 hours total a week working on the development of WordPress. Automattic’s sponsorship sees developers spend [10]almost 4,000 hours per week . The Automattic CEO also argues that WP Engine's decision to disable WordPress revisions by default reflects the company's disinterest in customer content.
"They disable revisions because it costs them more money to store the history of the changes in the database, and they don’t want to spend that to protect your content," Mullenweg wrote.
[11]As IBM pushes for more automation, its AI simply not up to the job of replacing staff
[12]How to spot a North Korean agent before they get comfy inside payroll
[13]Look! About chest high! Is it a pallet? Is it a drone? No, it's a Palletrone
[14]Heart of glass: Human genome stored for 'eternity' in 5D memory crystal
Mullenweg reiterated that point at WordCamp US 2024 last week. "Silver Lake doesn't give a dang about your open source ideals," he [15]said . "It just wants return on capital."
Silver Lake doesn't give a dang about your open source ideals. It just wants return on capital.
Automattic did not immediately respond to a request for comment.
WP Engine wants Mullenweg to stop slamming the company and claims the criticism follows from its refusal to agree to millions in annual payments described in the letter as "ostensibly … for a 'license' to use certain trademarks like WordPress, even though WP Engine needs no such license."
According to the letter, WP Engine is allowed to use the WordPress trademark under not only fair use but also the WordPress Foundation's [16]trademark policy , despite the policy's explicit mention of WP Engine for having "never once even donated to the WordPress Foundation, despite making billions of revenue on top of WordPress."
[17]
The WP Engine letter goes on to challenge Mullenweg's assertions about community contributions, trademark infringement, and other claims, while directing Automattic to preserve documents in case of litigation. It further hints at a potential legal claim tortious interference and unfair business practices, but no actual complaint has yet been filed.
WP Engine did not immediately respond to a request for comment. ®
Updated to add
On Tuesday evening, Automatic published a [18]cease-and-desist letter that its legal representative sent to WP Engine on Monday. The letter demands that WP Engine stop using its trademarks and also directs the biz to retain documents for possible litigation.
“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,” the letter states.
Get our [19]Tech Resources
[1] https://wpengine.com/wp-content/uploads/2024/09/Cease-and-Desist-Letter-to-Automattic-and-Request-to-Preserve-Documents-Sent.pdf
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZvOK55dnNFiKilPfb6fAXAAAAEc&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZvOK55dnNFiKilPfb6fAXAAAAEc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZvOK55dnNFiKilPfb6fAXAAAAEc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[5] https://trends.builtwith.com/cms/WordPress
[6] https://wordpress.org/news/2024/09/wp-engine/
[7] https://wpengine.com/blog/milestone-announcement/
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZvOK55dnNFiKilPfb6fAXAAAAEc&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[9] https://wordpress.org/five-for-the-future/pledge/wp-engine/
[10] https://wordpress.org/five-for-the-future/pledge/automattic/
[11] https://www.theregister.com/2024/09/24/ibm_layoffs_ai_talent/
[12] https://www.theregister.com/2024/09/24/mandiant_north_korea_workers/
[13] https://www.theregister.com/2024/09/24/palletrone/
[14] https://www.theregister.com/2024/09/21/human_genome_5d_memory_crystal/
[15] https://youtu.be/fnI-QcVSwMU?feature=shared&t=681
[16] https://wordpressfoundation.org/trademark-policy/
[17] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZvOK55dnNFiKilPfb6fAXAAAAEc&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[18] https://automattic.com/2024/09/25/open-source-trademarks-wp-engine/
[19] https://whitepapers.theregister.com/
That's about the size of it
diodesign
WP wanted WP Engine to pay its way more - it's been saying that for a while - and lately allegedly wanted millions in trademark licensing fees or it would trash WPE in public and private.
WPE isn't happy with any of that. Hence that letter.
C.
doublelayer
It sounds like the kind of fight that gets very boring very fast. A group is profiting off open source and returning very little of that profit to the creators although they're not required to return anything, old story. The other group is making unclear threats against them. Also an old story, and to the extent that we understand the threats, it's pointing out and criticizing configuration choices which people either changed to their liking or don't pay attention to. In the middle, we have something about trademarks which could conceivably be either misuse to suggest endorsement or weaponization to penalize a competitor, but is probably right in the middle where there's a little of both but so little that nobody else really cares. I expect that learning more about the facts would push me to sympathize with one of them more than the other, but I don't think we'll find a bombshell hidden in it.
ian_victor
'It just wants return on capital.'
And this is surprising? Next up, communal farming proposes sharing equipment and some dictatorships want to have a word about freedoms.
How is this not a PR exercise (and working at that), of leveraging the Streisand effect?
Not the first time....
Anonymous Coward
Not the first time that someone releases something with an open source license, and then moans that someone else is doing something that they don't like, even though they are sticking to the conditions of the license.
To be blunt, if you don't want your software used that way, use a different license.
There must surely be more to this dispute than is mentioned in the article. I don't actually see any substantive accusations at all other than "They're making a lot of money from their hosting service and we're not seeing any of it."