WordPress co-founder files countersuit against WP Engine over trademark violations

Automattic, the company co-founded by Matt Mullenweg, is embroiled in a legal battle with WordPress hosting provider WP Engine. Automattic's counterclaim alleges that WP Engine, after receiving a large investment from Silver Lake, violated its trademarks. The counterclaim accuses WP Engine of misusing the WordPress trademark, calling itself the "WordPress Technology Company" and allowing partners to use similar names. Automattic claims this was done to inflate WP Engine’s valuation for a potential sale. WP Engine is also said to have failed to contribute resources to the WordPress project as promised. Automattic had tried to resolve the issue with a fair trademark license but alleges WP Engine only pretended to negotiate. WP Engine's actions were driven by the need to maintain earnings, as a sale at a $2 billion valuation was allegedly planned. WP Engine has responded by asserting its use of the WordPress trademark is consistent with industry practice. This counterclaim contradicts WP Engine's initial lawsuit against Automattic, which accused Mullenweg of misconduct. A preliminary injunction was granted to WP Engine in its original lawsuit. The legal battle has expanded beyond initial accusations, unveiling more complex issues.