Automattic files counterclaim against WP Engine over trademarks and open‑source contributions

Automattic has filed a counterclaim in its legal battle with WP Engine, alleging that WP Engine — after receiving a $250 million investment from private equity firm Silver Lake — violated WordPress trademarks and failed to contribute materially to the open‑source WordPress project.

The counterclaim claims WP Engine used branding such as “WordPress Technology Company,” allowed partners to call it “WordPress Engine,” and released products labeled “Core WordPress” and “Headless WordPress,” which Automattic says confuse consumers about who develops WordPress. Automattic also alleges WP Engine did not deliver on a promised commitment to devote five percent of its resources to supporting the WordPress project.

Key allegations

• Trademark misuse: WP Engine allegedly used WordPress trademarks and confusing branding that imply official affiliation.
• Product naming: Release of products named “Core WordPress” and “Headless WordPress” that obscure the platform’s origin.
• Failure to contribute: Automattic says WP Engine didn’t commit the promised resources to the open‑source project after Silver Lake’s investment.
• Motivation: Automattic claims WP Engine, driven by private equity goals, prioritized inflating valuation for a rapid exit over stewardship responsibilities.

This counterclaim is Automattic’s response amid WP Engine’s earlier suit accusing Automattic and founder Matt Mullenweg of abuse of power and demanding royalties. That original complaint alleged Automattic sought a large monthly revenue share; it led to significant employee departures and a preliminary injunction in WP Engine’s favor.

Why it matters

The dispute raises broader questions about how private equity ownership affects companies that participate in open‑source ecosystems. Trademark control, accurate branding and tangible contributions to upstream projects are central to the health of open‑source communities — and conflicts like this can have downstream effects for developers and users.

What to watch next

• How the court rules on Automattic’s counterclaim and WP Engine’s original allegations.
• Any disclosures about resource commitments or licensing agreements between the parties.
• Impacts on open‑source governance and corporate behavior when private equity investments occur in ecosystem‑critical firms.

For further reading, see the original reporting: Engadget coverage.

Discussion: Should companies with private equity ownership be held to higher transparency and contribution standards when they operate inside open‑source ecosystems? What rules or safeguards would you want to see?