Automattic, WordPress CEO Must Face Antitrust Claims in Trademark Dispute

A federal judge allowed the claims to proceed after considering evidence about Automattic’s conduct during its trademark dispute with software developer WPEngine Inc., Bloomberg Law reported on Sept. 25. The ruling keeps alive allegations that Automattic and Mullenweg improperly wielded their position in the market for web content-management systems.

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WPEngine’s case centers on demands involving trademarks used throughout the WordPress business, including the WordPress and WooCommerce names. According to Bloomberg Law, WPEngine alleged that Automattic and Mullenweg sought millions of dollars annually from companies selling competing products and services for WordPress-based websites in exchange for trademark licenses and continued platform access.

The allegations effectively describe a shift from previously free access to potentially substantial licensing costs for businesses operating within the WordPress ecosystem, according to the publication. WPEngine did not agree to the demands, while two competitors that reached agreements are now paying amounts WPEngine characterized as excessive, Bloomberg Law reported.

The judge pointed to evidence concerning the aggressive nature of the trademark campaign in deciding that the antitrust allegations could move forward. The decision does not establish that Automattic or Mullenweg violated antitrust law; rather, it means WPEngine’s claims survived the effort to dispose of them at this stage of the litigation.

The dispute highlights the commercial tensions surrounding WordPress, whose technology supports a broad network of website developers, hosting providers and software businesses. At issue is how trademark rights and control over access to that ecosystem may intersect with federal competition law when companies offering WordPress-related services compete with entities affiliated with the platform.

Bloomberg Law reported that the judge cited evidence describing the approach taken during the trademark conflict as particularly aggressive. That evidence helped support allowing the competition claims against Automattic and Mullenweg to continue.

The litigation will now leave Automattic and its CEO facing antitrust allegations alongside the broader trademark conflict, with WPEngine seeking to establish that the licensing demands and restrictions went beyond an ordinary intellectual-property dispute and harmed competition.