Automattic Files Counterclaims Against WP Engine Over Trademark and Marketing Allegations
Automattic, the company behind the WordPress platform, has filed counterclaims against WP Engine, the hosting provider, in a lawsuit that WP Engine initiated in October 2024. The counterclaims allege that WP Engine engaged in trademark infringement and deceptive marketing practices by adopting the “WordPress Technology Company” branding and launching products such as “Core WordPress” and “Headless WordPress.” The lawsuit claims that WP Engine promised to dedicate 5% of its resources to the WordPress ecosystem but failed to uphold those commitments. Additionally, Automattic accuses WP Engine of reducing product quality and removing essential features to cut costs during this time.
The dispute comes amid Silver Lake’s $250 million investment in WP Engine, which reportedly aimed to sell the company at a $2 billion valuation, though no buyer was found. Potential buyers included Automattic, according to the filing. The case highlights ongoing tensions between Automattic and WP Engine, with the former alleging that the latter’s actions were motivated by financial gain rather than genuine support for the WordPress ecosystem.
WP Engine’s use of the “WordPress Technology Company” branding and product names like “Core WordPress” and “Headless WordPress” have drawn criticism from Automattic, which argues that these actions infringe on its trademarks and mislead customers. The counterclaims also suggest that WP Engine’s decision to cut costs by reducing product quality and removing features was a strategic move to maintain its valuation under pressure. The case is expected to have significant implications for both companies, particularly in terms of brand reputation and financial standing.
As the legal battle unfolds, both Automattic and WP Engine will need to address the allegations of trademark infringement and deceptive practices. The outcome of the case could set a precedent for how companies handle branding and intellectual property rights in the tech industry. For now, the dispute remains a focal point for stakeholders in the WordPress ecosystem, with many awaiting further developments in the legal proceedings.