The ongoing controversy between Automattic and WP Engine has taken center stage in the WordPress community, fueled by the recent publication of a term sheet that outlines a proposed trademark licensing agreement. This document, which Automattic shared on September 20, 2024, aims to clarify the terms under which WP Engine could use WordPress and WooCommerce trademarks and branding. Matt Mullenweg, co-founder of Automattic, emphasized the importance of transparency in these discussions, stating, “In the interest of transparency, we’ve published the term sheet we offered to @LeeEWittlinger and @heatherjbrunner; it’s a simple one-pager.”
The term sheet details a complicated negotiation process that began back in February 2023. Initially led by Mullenweg and later continued by Toni Schneider during Mullenweg’s sabbatical, the discussions aimed to create a framework for collaboration between the two organizations. The agreement proposed several compensation options, including a royalty fee of 8% of WP Engine’s gross revenue, allocation of 8% of revenue toward employee salaries for core WordPress development, or a combination of both. Furthermore, WP Engine would be prohibited from modifying or forking any software from Automattic or WooCommerce, with the agreement set for seven years and automatic one-year renewals.
However, the situation took a dramatic turn when Automattic’s announcement post indicated that the terms outlined in the term sheet were no longer sufficient due to WP Engine’s “behavior, deception, and incompetence.” Mullenweg expressed his dissatisfaction, stating, “That deal’s not on the table anymore. We’re seeking more, not 8%.” This shift raises questions about the potential future of WP Engine, with Mullenweg hinting at the possibility of a corporate takeover as the company finds itself with diminishing leverage.
The public reaction to Mullenweg’s openness about the term sheet has been polarized. While some individuals support the terms as reasonable, others raise concerns about the implications for competition and possible violations of antitrust laws. A notable tweet from Steve Struemph encapsulated these worries, stating, “You want to see their revenue as a report monthly broken down by product. You are a direct competitor! That can’t be ok in terms of antitrust laws or something. The monetary amount also seems excessive on top of that.”
In a twist of solidarity, Matthew Prince, co-founder and CEO of Cloudflare, offered to donate resources to power WordPress.org, demonstrating the community’s ongoing commitment to the platform’s health. This move highlights the potential for collaboration among tech companies in support of open-source initiatives, even amid contentious negotiations.
Internally, Automattic appears to be facing its own challenges. Reports suggest a growing divide among employees regarding Mullenweg’s leadership style. Some sources claim that dissenters are being encouraged to leave the company, raising questions about the company culture and overall morale within Automattic. Jeff, a Twitter user, remarked on this phenomenon, saying, “If you’re not with Matt, you’re against Matt and he’ll pay you to leave? Seems like an odd way of going about things.”
As the situation unfolds, the implications for both Automattic and WP Engine are significant. The future of the WordPress ecosystem may depend on how these negotiations resolve and how they influence the relationships among key players in the community. With the stakes this high, the coming months will be crucial for stakeholders who are invested in the platform’s success. The outcome will likely shape the landscape of WordPress development and the broader open-source community, making it essential for users, developers, and companies to stay informed and engaged.
