WP Engine and WordPress: Should Social Purpose Organisations Be Concerned About The Current Tension?

Matt Mullenweg, co-founder of the WordPress open-source project, recently criticised WP Engine—a prominent WordPress hosting company—for its limited contributions to the open-source community. This escalated quickly, leading to an ongoing legal dispute between Mullenweg, his company Automattic, and WP Engine.

Through his influential role within the WordPress project Mullenweg took steps to restrict WP Engine's access to key services hosted on WordPress.org. Although this action didn't majorly disrupt WP Engine's customers' websites, it created operational challenges until WP Engine developed its own equivalent services to fill the gap.

This situation has raised questions for WP Engine customers in the social purpose space. A common question I've fielded is: "Should I be worried?"

To address this, I spoke with the CEO of a global WordPress agency. Here's a summary of our conversation and an analysis of the key issues.

Understanding the WordPress Ecosystem

The first thing I learned was the complex ambiguity surrounding "WordPress" as a term.  In reality this encompasses multiple entities:

• WordPress (the open-source project): This software powers 43% of all websites globally (as of June 2024) and is maintained by a large community  of paid and voluntary contributors. Mullenweg, the remaining co-founder, leads this group.

• WordPress.org: The public-facing site of the open-source project, which hosts repositories of third-party add-ons, known as "plugins" and "themes."

• The WordPress Foundation: Created and controlled by Mullenweg, the Foundation holds the trademark rights to "WordPress." It promotes the open-source mission and brand but doesn't have direct legal authority over the development community.

• Automattic: A commercial entity founded by Mullenweg that offers various WordPress-related products and services, including WordPress.com, which hosts around 24 million websites, and WordPress VIP which offers enterprise services.

• WP Engine: One of many companies that profit from services related to WordPress, though they are not affiliated with Automattic or the Foundation.

What's the Dispute About?

The root of the conflict lies in differing visions for the open-source project. WordPress is distributed under the GNU General Public License (GPL), allowing anyone to use, modify, and distribute the software. However, in 2014, Mullenweg introduced the "Five for the Future" initiative, which encourages organisations profiting from the WordPress ecosystem to contribute 5% of their resources to the project.

Automattic has adopted this target, but uptake among other companies has been inconsistent. Mullenweg has particularly singled out WP Engine, noting that its contributions to WordPress declined after the company received private equity funding.

Legal Action Unfolds

The friction has since evolved into a legal battle, with key developments as follows:

1. Cease-and-Desist Letters: In September 2024, WP Engine issued a cease-and-desist letter to Mullenweg, demanding a retraction of his statements. Automattic responded with its own cease-and-desist, accusing WP Engine of unauthorised use of the WordPress and WooCommerce trademarks.

2. WP Engine's Lawsuit Against Automattic and Mullenweg: On October 3, 2024, WP Engine filed a lawsuit in a California federal court, alleging libel, slander, and violations of the Computer Fraud and Abuse Act. WP Engine claims that Mullenweg is misusing his influence and harming the community by demanding substantial licensing fees for WordPress trademarks.

3. Automattic's Motion to Dismiss: On October 31, 2024, Automattic and Mullenweg filed a motion to dismiss the lawsuit, arguing that WP Engine's claims are unfounded and that WP Engine has no legal rights to WordPress.org's resources.

4. WP Engine's Injunction Request: In mid-October 2024, WP Engine requested a court injunction to prevent Mullenweg from blocking its access to WordPress.org resources, arguing that these actions disrupted its services and the broader ecosystem.

These legal proceedings are ongoing, with a court hearing scheduled for March 2025.

Future Outlook: Business as Usual

Despite the ongoing legal dispute, the likelihood of service disruption for WP Engine customers remains low. WordPress is open-source, so WP Engine's use of the core code is unaffected by Mullenweg's actions. Additionally, WP Engine has taken swift steps to replace any services previously reliant on resources controlled by WordPress.org.

The "Five for the Future" initiative is also non-binding; it was introduced by Mullenweg independently and not as an enforceable policy from the WordPress project. It's essentially a recommendation, not a requirement, and does not legally impact WP Engine or other companies using WordPress.

Collateral Damage in the Community

While the immediate risk to WP Engine customers is minimal, the dispute has caused fractures within the WordPress community:

• Talent Exodus: Mullenweg offered severance packages to Automattic employees who disagreed with the company's actions, leading to an estimated 9-14% departure rate.

• Community Morale: The dispute has affected morale within the WordPress community, raising concerns about talent retention and succession planning.

• Enterprise Concerns: The ongoing uncertainty may deter enterprise customers who prioritise stability and reliability, potentially impacting WordPress's appeal in the long term.

In summary, while WP Engine customers in the social purpose sector have little to fear in terms of direct impact, the broader WordPress community is feeling the strain of this conflict. WordPress's status as open-source software shields WP Engine and other hosting providers from legal repercussions, but the division within the community could have longer-term implications for WordPress's brand and its ecosystem.

Andrew Walker
Technology consulting for charities
https://www.linkedin.com/in/andrew-walker-the-impatient-futurist/

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