WP Engine, a leading WordPress hosting service, has sent a cease-and-desist letter to Automattic, the company behind WordPress.com, over comments made by Automattic’s CEO Matt Mullenweg. The letter, dated September 23, 2024, demands that Automattic retract its statements and stop making disparaging comments about WP Engine.
Background
The controversy began last week when Mullenweg described WP Engine as a "cancer to WordPress" in a blog post. WP Engine has taken issue with this comment, stating that it is false and damaging to their reputation. In response to the criticism, Automattic started asking WP Engine to pay a significant percentage of its gross revenues on an ongoing basis for a license to use trademarks like ‘WordPress.’
The Letter
WP Engine’s cease-and-desist letter accuses Mullenweg of threatening the company before the WordCamp summit held last week. The letter states that Mullenweg threatened to embark on a "scorched earth nuclear approach" toward WP Engine within the WordPress community and beyond if they did not agree to pay Automattic a large sum of money.
The letter also alleges that Automattic started asking WP Engine to pay tens of millions of dollars in fact — on an ongoing basis for a license to use trademarks like ‘WordPress.’ WP Engine defended its use of the ‘WordPress’ trademark under fair use laws and said it was consistent with the platform’s guidelines.
Screenshots of Mullenweg’s Text Messages
The letter includes screenshots of Mullenweg’s text messages to WP Engine’s CEO and board members, which appear to state that Mullenweg would make the case to ban WP Engine from WordPress community events in his talk at WordCamp if the company did not accede to Automattic’s demands.
Automattic’s Response
Automattic has not immediately responded to a request for comment. However, Mullenweg has previously criticized WP Engine for raking in profits without giving much back to the open source project, while also disabling key features that make WordPress such a powerful platform in the first place.
The "Five for the Future" Investment Pledge
In a blog post last week, Mullenweg said that WP Engine was contributing 47 hours per week to the ‘Five for the Future’ investment pledge to contribute resources toward the sustained growth of WordPress. Comparatively, he said Automattic was contributing 3,786 hours per week. However, WP Engine has pushed back against this characterization in its C&D letter.
Investment and Funding
Automattic invested in WP Engine in 2011, when the company raised $1.2 million in funding. Since then, WP Engine has raised over $300 million in equity, with the bulk of it coming from a $250 million investment from private equity firm Silver Lake in 2018.
The "Cancer to WordPress" Comment
Mullenweg’s comment about WP Engine being a "cancer to WordPress" was made in a blog post last week. In the post, he criticized WP Engine for raking in profits without giving much back to the open source project, while also disabling key features that make WordPress such a powerful platform in the first place.
Consequences of Mullenweg’s Threats
The letter alleges that Mullenweg carried out his threats by making repeated false claims disparaging WP Engine to its employees, its customers, and the world. This has led to significant damage to WP Engine’s reputation and business operations.
Conclusion
WP Engine is demanding a retraction and apology from Automattic over Mullenweg’s comments and threats. The company believes that these actions are damaging to their reputation and business operations, and they are seeking compensation for the harm caused.
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