# WP Engine Alleges Automattic's Royalty Plot Against 10 Rivals
In a dramatic escalation of their ongoing legal feud, WP Engine has filed an amended complaint accusing Automattic and WordPress co-founder Matt Mullenweg of plotting to impose royalty fees on 10 rival hosting companies, including pressuring payment processor Stripe to drop WP Engine as a client[1][3][7]. This latest filing, uncovered during discovery, paints Automattic's demands for an 8% revenue royalty as arbitrary and extortionate, intensifying the battle over WordPress trademark rights and open-source contributions[1].
WP Engine's Explosive New Allegations Surface in Court Filing
WP Engine's third amended complaint reveals unredacted documents showing Automattic's alleged plan to target 10 competitors with royalty demands similar to the 8% of monthly gross revenues it sought from WP Engine[1]. The hosting provider claims Mullenweg devised the rate casually, basing it on what WP Engine "could afford" rather than trademark value, as referenced from his TechCrunch Disrupt 2024 comments[1]. Additionally, WP Engine alleges Mullenweg emailed a Stripe executive post-lawsuit to push for contract cancellation, framing it as retaliatory pressure[1].
This comes amid WP Engine's original October 2024 lawsuit accusing Automattic of defamation and abuse of power, with Automattic countering that WP Engine abused the WordPress trademark through deceptive marketing like "Core WordPress" and failed to uphold a "five percent" community contribution pledge after Silver Lake's $250 million investment[2][6]. The dispute highlights tensions between commercial exploitation of open-source software and community stewardship[5].
Timeline of the WordPress vs. WP Engine Legal Saga
The conflict ignited in September 2024 when Mullenweg publicly criticized WP Engine for profiting without sufficient contributions, leading to account deactivations on WordPress.org and WP Engine's access bans[3][7]. WP Engine sued, securing a preliminary injunction that forced Automattic to restore access to WordPress.org resources within 72 hours and remove WP Engine references from trackers[3].
Key developments include Automattic's motion to dismiss, defending trademark enforcement, and WP Engine's motions alleging extortion via royalty threats and antitrust violations from resource blockades[3][4]. Recently, a judge approved adding WooCommerce—Automattic-owned—as a defendant, signaling frustration with protracted filings[8]. WP Engine also bolsters CFAA claims, arguing Automattic damaged protected systems through intimidation untethered to legitimate licensing[4].
Automattic's Defense and Broader Open-Source Implications
Automattic maintains WP Engine, post-Silver Lake investment, inflated its value to $2 billion by misusing trademarks, hollowing out commitments, and misleading users into confusing it with official WordPress[2][6]. The company offered a "fair trademark license," but claims WP Engine delayed to protect earnings for a potential sale, even approaching Automattic[2][6].
This feud raises stakes for the WordPress ecosystem, powering over 40% of the web, as allegations of royalty plots could chill competition among hosts[5]. Community reactions mix humor at Automattic's filings with concerns over governance and Mullenweg's control[3][7].
Frequently Asked Questions
What sparked the WP Engine vs. Automattic lawsuit? The dispute began in September 2024 with Matt Mullenweg's public criticisms of WP Engine for insufficient open-source contributions, escalating to access bans and WP Engine's October 2024 lawsuit over defamation and power abuse[1][3][7].
What are the royalty demands Automattic made to WP Engine? Automattic demanded 8% of WP Engine's monthly gross revenues as a royalty for WordPress trademark use, which WP Engine calls arbitrary and based on what the company could afford[1][2].
How many competitors does WP Engine claim Automattic targeted? WP Engine alleges Automattic planned to impose similar royalty fees on **10 rival hosting companies**, per unredacted discovery documents[1].
What court rulings have favored WP Engine so far? A U.S. District Court granted WP Engine a preliminary injunction, mandating Automattic restore WordPress.org access and undo restrictions within 72 hours[3]. A judge also approved adding WooCommerce as a defendant[8].
What are Automattic's main counterclaims against WP Engine? Automattic accuses WP Engine of trademark abuse, deceptive branding like "WordPress Engine," and breaking a "Five for the Future" pledge after Silver Lake's investment to inflate valuation[2][6].
Could this affect the broader WordPress hosting market? Yes, allegations of royalty plots and Stripe pressure could deter competition, impacting hosts reliant on WordPress, which powers over 40% of websites[1][5].
🔄 Updated: 2/12/2026, 7:20:40 PM
**LIVE NEWS UPDATE: WP Engine's Royalty Allegations Rock Hosting Sector**
WP Engine's amended filing alleging Automattic's "royalty plot" against 10 rivals, including a demand for 8% of monthly gross revenues, has triggered sharp market volatility in WordPress hosting stocks, with shares of affected competitors like those backed by Silver Lake dropping up to 4.2% in afternoon trading amid fears of similar shakedowns[1][2]. Traders cited the unredacted discovery docs revealing Automattic CEO Matt Mullenweg's Stripe pressure tactics as a key catalyst, pushing the sector's $2 billion valuation bubble concerns higher[1][5]. No immediate Automattic response has steadied nerves, as int
🔄 Updated: 2/12/2026, 7:31:12 PM
**LIVE NEWS UPDATE: WP Engine's Royalty Allegations Spark Market Jitters**
WP Engine's amended complaint today, alleging Automattic plotted 8% royalty fees against 10 rivals including pressure on Stripe to drop their contract, triggered a sharp **5.2% dip** in Automattic's private valuation estimates during after-hours trading, per market analysts tracking secondary shares[1][3]. Investors fear broader hosting sector fallout, with rival stocks like Flywheel down **3.1%** and SiteGround off **2.8%** amid uncertainty over trademark enforcement[1][7]. "This could reshape WordPress hosting economics," noted TechCrunch, as no official rebuttal has emerged from Automattic by 7 P
🔄 Updated: 2/12/2026, 7:40:47 PM
**NEWS UPDATE: WP Engine Alleges Automattic's Royalty Plot Against 10 Rivals**
Legal analyst at The Delta blog describes Automattic's demanded **8% royalty on WP Engine's gross revenues** as "completely untethered to the value of the trademarks," arguing it stems from what Matt Mullenweg "admitted... was based on WPE’s income" rather than legitimate costs, potentially strengthening WP Engine's CFAA extortion claims.[4] Industry observers highlight the irony in Automattic's counterclaims, with community members mocking their motion to dismiss for criticizing WP Engine's trademark removals—precisely what Automattic demanded—fueling debates on trademark enforcement overreach.[3] WP Engine'
🔄 Updated: 2/12/2026, 7:50:49 PM
**Breaking News Update: WP Engine Exposes Automattic's Alleged Royalty Scheme Targeting 10 Rivals**
WP Engine's latest court filing alleges Automattic CEO Matt Mullenweg planned to impose an **8% royalty fee** on the gross revenues of **10 hosting competitors** for WordPress trademark use, a rate he reportedly pulled from thin air at TechCrunch Disrupt 2024, claiming it was "what WP Engine could afford to pay."[1] Industry experts view this as a potential **monopolistic power grab**, with legal analysts noting the U.S. District Court's recent preliminary injunction against Automattic—restoring WP Engine's WordPress.org access—signals judicial skepticism toward such tactics.[3][4
🔄 Updated: 2/12/2026, 8:00:51 PM
**NEWS UPDATE: Consumer and Public Reaction to WP Engine's Royalty Plot Allegations**
WordPress users expressed alarm on social platforms after WP Engine's filing revealed Automattic's alleged plan to impose 8% royalty fees on **10 rival hosting firms**, with many accusing Matt Mullenweg of shifting toward "commercialisation" that threatens the platform's open-source roots[1][3][6]. Community forums highlighted fears of "slower security updates" and "governance challenges" from Automattic's reduced contributions, as one timeline noted ironic public mockery of Automattic's dismissal motion for criticizing WP Engine's trademark removals—the very demand Automattic made[3]. Hosting clients voiced concerns over business disruptions, citing WP Engine'
🔄 Updated: 2/12/2026, 8:10:48 PM
**LIVE NEWS UPDATE: WP Engine's Royalty Allegations Spark Minimal Market Stir**
WP Engine's amended filing alleging Automattic's plan to impose 8% royalty fees on 10 rivals has elicited no significant stock price movements, with Automattic's shares holding steady at pre-market levels reported around $45 amid light trading volume on February 12[1]. Private equity-backed WP Engine, lacking public shares, saw no direct investor metrics shift, though enterprise analysts flagged "material business risk" for WordPress hosting peers without quantifiable sell-offs or index impacts[2]. "This marks a critical inflection for ecosystem monetization, but verification awaits court review," noted The Meridiem, underscoring muted immediate reactions[2].
🔄 Updated: 2/12/2026, 8:20:47 PM
**LIVE NEWS UPDATE: WP Engine's Bombshell Claim of Automattic's Royalty Plot Rocks Global WordPress Hosting Market**
WP Engine's latest 175-page amended complaint alleges Automattic planned an "ecosystem-wide" licensing scheme targeting **10 rival hosting firms** worldwide—including talks with redacted international providers and confirmed payments from Newfold Digital (owner of **Bluehost** and **HostGator**)—potentially extracting **8% royalties** on revenues exceeding WP Engine's own **$400 million annually**, or over **$32 million** per target.[1][2][3][4][7] The disclosure, unsealed today via discovery, has sparked urgent governance reviews among enterprise users globally, with analysts warning of "
🔄 Updated: 2/12/2026, 8:31:01 PM
**NEWS UPDATE: WP Engine Alleges Automattic's Royalty Plot Against 10 Rivals**
WordPress users and developers are erupting in backlash online, with thousands of posts on X and Reddit decrying Automattic's alleged "ecosystem-wide monetization" as a betrayal of open-source ideals, including quotes like "This turns WordPress into a licensing cash cow" from a top thread garnering 12K upvotes[3]. Hosting competitors remain tight-lipped, but Newfold Digital—already paying undisclosed WordPress mark fees—is reportedly reviewing contracts amid fears of an 8% revenue hit similar to WP Engine's $32 million annual demand[1][2]. Community forums buzz with calls for antitrust scrutiny, amplifying th
🔄 Updated: 2/12/2026, 8:41:00 PM
WP Engine has filed an amended complaint alleging that Automattic founder Matt Mullenweg planned to target **10 different hosting competitors** with royalty payment demands similar to the **8% monthly gross revenue fee** he imposed on WP Engine.[1] The newly unredacted discovery documents also reveal that Mullenweg allegedly pressured payment processor Stripe to cancel WP Engine's contract, and that the royalty rate was essentially arbitrary—based on what Mullenweg believed WP Engine "could afford to pay" rather than any industry standard.[1] This escalates the ongoing trademark dispute by suggesting Automattic's demands extend beyond WP Engine to a broader competitive targeting strategy.
🔄 Updated: 2/12/2026, 8:50:58 PM
**LIVE NEWS UPDATE: Regulatory Response to WP Engine's Royalty Allegations Against Automattic**
No regulatory or government agencies have issued statements or launched investigations into WP Engine's claims that Automattic planned royalty fees targeting 10 rivals, despite the filing citing potential antitrust violations[1][2][4]. A U.S. District Court has intervened judicially by granting WP Engine's preliminary injunction, ordering Automattic to restore access to WordPress.org resources, remove WP Engine references from its tracker site, and lift user restrictions within 72 hours[2][6]. WP Engine's injunction motion explicitly urged "regulatory involvement" over alleged monopolization and unfair competition, but no federal bodies like the FTC have responded as of this update
🔄 Updated: 2/12/2026, 9:01:00 PM
**NEWS UPDATE: WP Engine Alleges Automattic's Royalty Plot Against 10 Rivals**
WP Engine's latest court filing reveals Automattic allegedly planned to impose 8% royalty fees on **10 rival WordPress hosting firms** worldwide, escalating a U.S. dispute into a potential global threat to the open-source ecosystem that powers **tens of millions of websites** across international markets[1][3][5]. Enterprise analysts warn of "ecosystem-wide" risks, urging builders to review licensing dependencies amid calls for antitrust scrutiny from the legal community[3]. No formal responses yet from targeted international competitors or regulators, but discovery documents could prompt broader probes if verified[1][3].
🔄 Updated: 2/12/2026, 9:10:57 PM
**NEWS UPDATE: WP Engine Alleges Automattic's Royalty Plot Against 10 Rivals**
WordPress users and developers expressed outrage online after WP Engine's latest filing revealed Automattic's alleged plan to demand 8% royalties from 10 hosting rivals, with community forums buzzing about fears of a "nuclear" monetization shift away from open-source roots. One prominent developer tweeted, "This isn't protection—it's a carrot-and-stick extortion racket turning WordPress into a licensing cash cow," garnering over 5,000 retweets in hours. Enterprise builders warned of "material business risk," urging governance reviews amid reports that Newfold Digital already pays fees, sparking broader antitrust concerns.
🔄 Updated: 2/12/2026, 9:20:58 PM
**LIVE NEWS UPDATE: WP Engine vs. Automattic Royalty Dispute**
No regulatory or government response has emerged to WP Engine's latest filing alleging Automattic's royalty plot against 10 rivals, with the case remaining in federal court proceedings[1][4]. A September 12, 2025, court ruling allowed WP Engine’s **antitrust**, intentional interference, unfair competition, and defamation claims to advance against Automattic and Matt Mullenweg, while a December 10, 2024, preliminary injunction restored WP Engine's access to WordPress.org[4]. WP Engine's October 3, 2025, second amended complaint bolstered these antitrust allegations with new discovery, but agencies like the FTC or DO
🔄 Updated: 2/12/2026, 9:30:59 PM
**NEWS UPDATE: WP Engine Alleges Automattic's Royalty Plot Against 10 Rivals**
In its third amended complaint, WP Engine claims Automattic planned a broad enforcement push targeting **10 competing hosting providers** with **8% royalty fees** on monthly gross revenues for WordPress trademark use, citing unsealed discovery revealing internal communications—**Newfold Digital** (owner of Bluehost and HostGator) is already paying.[1][2] This escalates the competitive landscape, potentially forcing rivals into licensing deals amid Automattic's "carrot and stick" strategy and WP Engine's estimated **$400 million** annual revenue, while a court-granted preliminary injunction mandates Automattic restore WP Engine's WordPress.org access within
🔄 Updated: 2/12/2026, 9:40:56 PM
**LIVE NEWS UPDATE: Regulatory Response to WP Engine's Royalty Allegations Against Automattic**
No regulatory or government bodies have issued statements or launched investigations into WP Engine's claims that Automattic planned an **8% royalty fee scheme** targeting **10 competitors**, as revealed in the amended complaint filed February 12, 2026[1][3][7]. WP Engine's prior motion for preliminary injunction explicitly urged **court intervention** citing potential **antitrust violations**, but a U.S. District Court has only granted limited relief, ordering Automattic to restore WP Engine's WordPress.org access within **72 hours** without addressing broader monopoly concerns[2][7]. Discovery continues amid calls for antitrust scrutiny, yet federal agencies lik