{"id":8984,"date":"2026-02-16T11:15:34","date_gmt":"2026-02-16T15:15:34","guid":{"rendered":"https:\/\/hostingdiscussion.com\/news\/?p=8984"},"modified":"2026-02-16T05:43:46","modified_gmt":"2026-02-16T09:43:46","slug":"wp-engine-escalates-legal-fight-claims-broader-royalty-push-by-automattic","status":"publish","type":"post","link":"https:\/\/hostingdiscussion.com\/news\/wp-engine-escalates-legal-fight-claims-broader-royalty-push-by-automattic\/","title":{"rendered":"WP Engine escalates legal fight, claims broader royalty push by Automattic"},"content":{"rendered":"

The legal dispute between WP Engine<\/a> and Automattic<\/a> has entered a new phase after the hosting company filed an amended complaint that expands its allegations against WordPress co founder Matt Mullenweg and his company.<\/span><\/p>\n

In the updated filing, WP Engine claims Automattic intended to pursue royalty payments from as many as ten hosting providers for their use of the WordPress trademark<\/a>. According to the complaint, Mullenweg sought an 8 percent share of WP Engine\u2019s monthly gross revenue, arguing that the company benefits from the open source WordPress ecosystem without contributing proportionally to its development.<\/span><\/span><\/p>\n

The case, originally filed in October 2024, involves trademark use, competitive behavior, and management practices in the WordPress community.<\/span> WP Engine had previously sued Automattic and Mullenweg for defamation and abuse of power. Automattic had filed a counterclaim for trademark abuse and deceptive marketing practices.<\/span><\/p>\n

The latest amendment follows the discovery process, during which previously sealed communications became available. WP Engine<\/a> now alleges that Automattic discussed similar royalty arrangements with other hosting firms. The lawsuit mentions internal communications that appear to indicate some hosts, including those in the Newfold group of companies, already have trademark-related agreements in place with Automattic. However, information about other hosts is redacted.<\/span><\/p>\n

WP Engine also claims that Mullenweg reached out to a Stripe executive following the lawsuit\u2019s filing, encouraging the payment service to reevaluate its relationship with WP Engine. The lawsuit portrays this action as an effort to apply pressure during the course of litigation.<\/span><\/p>\n

The lawsuit also revisits the reasoning behind the proposed 8 percent royalty rate. WP Engine describes the rate as arbitrary, pointing to public statements in which Mullenweg said the rate was consistent with what the company could afford to pay and still be cash flow positive.<\/span><\/p>\n

Automattic<\/a>, in response to the amended lawsuit, said that the lawsuit \u201cdoes not raise any new claims\u201d and that a number of its central allegations have already been dismissed by courts. The company again argues that the lawsuit is a reflection of competitive market forces rather than any wrongdoing.<\/span><\/p>\n

Outside of the litigation process, the lawsuit has implications for trademark authority, open source management, and the relationship between community management and commercial hosting interests in the WordPress community.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The legal dispute between WP Engine and Automattic has entered a new phase after the hosting company filed an amended complaint that expands its allegations against WordPress co founder Matt Mullenweg and his company. In the updated filing, WP Engine claims Automattic intended to pursue royalty payments from as many as ten hosting providers for […]<\/p>\n","protected":false},"author":20624,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[5747,1658,4818,3103,5748,2374],"class_list":["post-8984","post","type-post","status-publish","format-standard","hentry","category-featured","tag-automattic-trademark-dispute","tag-matt-mullenweg","tag-open-source-governance","tag-wordpress-hosting","tag-wordpress-legal-battle","tag-wp-engine"],"acf":[],"yoast_head":"\nWP Engine escalates legal fight, claims broader royalty push by Automattic - Web Hosting News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/hostingdiscussion.com\/news\/wp-engine-escalates-legal-fight-claims-broader-royalty-push-by-automattic\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"WP Engine escalates legal fight, claims broader royalty push by Automattic - Web Hosting News\" \/>\n<meta property=\"og:description\" content=\"The legal dispute between WP Engine and Automattic has entered a new phase after the hosting company filed an amended complaint that expands its allegations against WordPress co founder Matt Mullenweg and his company. 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