The WordPress community is currently witnessing a significant dispute involving WP Engine, Automattic, and Matt Mullenweg, the co-founder of WordPress. Recent developments have raised concerns about trademark usage, WordPress’s open-source ethos, and the potential impact on end-users and the broader ecosystem.
At WordCamp US last week, Matt Mullenweg delivered a keynote address covering a range of topics, including contribution ethics, the principles of open source, and corporate commitments within the WordPress ecosystem. Notably, he singled out WP Engine, urging the community to reconsider using their services. This public critique was followed by a post on WordPress.org titled “WP Engine is banned from WordPress.org,” where Matt announced that WP Engine would no longer have access to WordPress.org’s resources.
Behind the scenes, it emerged that Automattic’s CFO, Mark Davies, had communicated to a WP Engine board member that Automattic would “go to war” if WP Engine did not agree to pay a significant percentage of its gross revenues—specifically, 8%—as a licensing fee for using trademarks like “WordPress.” This demand amounts to tens of millions of dollars annually. According to WP Engine’s cease and desist letter, they believe this demand is unfounded, arguing that their use of the WordPress name is legally permissible under established trademark law and consistent with WordPress’s own guidelines.
Adding to the complexity, the WordPress Foundation has filed trademarks for “Managed WordPress” and “Hosted WordPress.” These terms have been widely used in the industry for years to describe specific types of hosting services tailored for WordPress websites. The filing of these trademarks has raised alarms within the community about potential overreach and the future of fair use within the ecosystem.
Trademark Disputes and Policy Changes
Historically, the WordPress Foundation’s trademark policy allowed businesses and projects to use the WordPress name and logo to refer to and explain their services. The abbreviation “WP” was explicitly noted as not being covered by the WordPress trademarks, allowing companies to incorporate it into their branding.
However, recent changes to the policy have altered this understanding. The updated policy now suggests that using “WP” in ways that might confuse people—such as in “WP Engine”—is discouraged. The policy states that many people mistakenly believe WP Engine is officially associated with WordPress, which it is not. Furthermore, the policy indicates that any commercial use of the WordPress trademark now requires a license from Automattic, with Newfold being the only sub-licensee.
Automattic, which holds an exclusive commercial license to the WordPress trademark, asserts that WP Engine’s use of “WordPress” in phrases like “Managed WordPress Hosting” necessitates a paid license. WP Engine contends that its use of the WordPress name is fair use under settled trademark law, as it accurately describes the services it offers—hosting and managing WordPress websites. They argue this practice aligns with longstanding community norms and WordPress’s previous trademark policies.
Trademark Applications for “Managed WordPress” and “Hosted WordPress”
On July 12th, the WordPress Foundation filed trademark applications for “Managed WordPress” and “Hosted WordPress.” These filings have significant implications for hosting providers and developers who have traditionally used these terms to describe their services.
If these trademarks are granted, every managed WordPress host could face litigation or demands for licensing fees from Automattic. This move has caused considerable concern within the industry. Hosting companies worry that controlling such commonly used terms could stifle competition, hinder innovation, and create barriers to entry for smaller providers.
Implications for the WordPress Community
The aggressive enforcement of trademarks and demands for substantial revenue shares raise critical questions about the future of WordPress as an open-source platform. One of the core principles of open source is fostering a collaborative environment without prohibitive restrictions. Companies might become disincentivized from contributing to the WordPress ecosystem if they fear legal repercussions or significant financial burdens, which could hinder the platform’s growth and development.
Economically, hosting providers and agencies may face increased operational costs due to licensing fees or legal defenses. These expenses could be passed on to consumers, leading to higher prices for WordPress-related services. Smaller companies and startups might struggle to compete, potentially resulting in a monopolized environment dominated by a few large players.
The dispute also risks fragmenting the community. Developers and companies might consider shifting to other platforms or even forking WordPress to continue operating without trademark restrictions. Such fragmentation could weaken the strength and cohesiveness of the WordPress community, which has been instrumental in its widespread adoption and success.
What Does This Mean for End-Users?
The dispute could lead to limited hosting options and potentially higher costs for end-users. If hosting providers are compelled to pay substantial licensing fees or face legal challenges, they might increase their prices or discontinue WordPress services altogether.
There’s also the possibility of reduced innovation and support. If developers and companies withdraw from the WordPress ecosystem due to these disputes, users might experience fewer updates, plugins, themes, and diminished community support.
Moreover, the uncertainty surrounding the continuity of services and support could be concerning for website owners who rely on WordPress for their online presence. The risk of instability might prompt some users to explore alternative platforms, further impacting the community and ecosystem.
Conclusion
The conflict between WP Engine, Automattic, and the WordPress Foundation highlights essential discussions about trademark use, open-source values, and balancing community collaboration with commercial interests. While protecting intellectual property rights is essential, such measures mustn’t undermine the open-source ethos fundamental to WordPress’s growth and success.
The outcome of this dispute could set significant precedents for how open-source projects handle trademark and licensing issues in the future.
References
- “WP Engine Must Win” by Ryan McCue, September 26, 2024
- “WP Engine is banned from WordPress.org” by Matt Mullenweg, September 25, 2024
- Reddit Post by u/amandahailey85 on r/Wordpress, September 24, 2024
