WP Engine Amends Suit: Accuses Automattic of Targeting 10 Competitors with Royalty Claims

WP Engine has amended its lawsuit against Automattic (AMT) to allege the company planned to pursue royalty claims against up to 10 hosting competitors, including leveraging pressure on payment processor Stripe to cancel its contract. The dispute centers on a proposed 8% royalty of WP Engine’s monthly gross revenue for using the WordPress brand, which the company claims is arbitrarily set and violates the open-source community’s interests. WP Engine alleges Automattic abused its trademark and engaged in defamation and deceptive marketing, citing internal communications where Mullenweg threatened to “steal” WP Engine’s customers and use “nuclear war” language. The amended filing, unsealed after discovery, also notes Newfold already pays Automattic for its trademarks and that other hosting providers are in discussions. Automattic has not commented.