In the ongoing trademark battle between Automattic’s CEO, Matthew Mullenweg, and WP Engine, tensions have reached a boiling point, leading to the resignation of 159 Automattic employees.

The dispute centers on Mullenweg’s demands that WP Engine pay a licensing fee for using WordPress trademarks or contribute developer time to the open-source project.

After WP Engine refused, both parties exchanged cease-and-desist letters, and WP Engine eventually filed a federal lawsuit against Mullenweg and Automattic, alleging extortion, libel, and unfair competition.

The public controversy sparked internal discord within Automattic. Mullenweg, acknowledging the divide, offered a buyout to employees who disagreed with his stance.

The incentive, which provided $30,000 or six months’ salary, resulted in 8.4% of Automattic’s workforce leaving, primarily affecting teams in the WordPress ecosystem.

Despite the exodus, Mullenweg expressed relief, stating he feels “much lighter,” quoting Winston Churchill’s sentiment, “Never let a good crisis go to waste.”

As the legal battle continues, the broader WordPress community watches closely, with the lawsuit set to play out in court. The case has already sparked significant waves within Automattic and raised questions about Mullenweg’s influence over the WordPress trademark.

The outcome could reshape how WordPress’s open-source ecosystem navigates commercial disputes going forward.