159 employees are leaving Automattic as CEO's fight with WP Engine escalates
The employees accepted a severance package offered to those who disagreed with Matt Mullenweg's direction of WordPress and his fight with WP Engine.
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The dispute between Automattic and WP Engine is a complex one, involving accusations of trademark abuse, conflicts of interest, and power struggles. Here's a detailed breakdown of the situation:
Background
Automattic is the company behind WordPress, a popular open-source content management system (CMS). WordPress has become a household name, with millions of websites built on the platform. WP Engine, on the other hand, is a web hosting provider that offers managed hosting services specifically designed for WordPress websites.
The dispute
The dispute between Automattic and WP Engine started when WP Engine began to use the WordPress trademark in its branding and marketing efforts. Automattic, which owns the WordPress trademark, saw this as a violation of their intellectual property rights. WP Engine argued that it was using the trademark in a way that was consistent with the open-source spirit of WordPress, but Automattic disagreed.
Accusations of trademark abuse
Automattic CEO Matt Mullenweg accused WP Engine of "abuse of power" and "trademark abuse" in a series of tweets and statements. He claimed that WP Engine was using the WordPress trademark to confuse consumers and undermine the value of the trademark. WP Engine responded by denying any wrongdoing and claiming that it was simply using the trademark in a way that was consistent with its branding and marketing efforts.
Cease-and-desist letters
The dispute escalated when both parties sent cease-and-desist letters to each other. WP Engine sent a letter to Automattic demanding that the company stop using the WordPress trademark, while Automattic sent a letter to WP Engine demanding that the web hosting provider stop using the WordPress trademark.
Lawsuit filed by WP Engine
On Thursday, WP Engine filed a lawsuit against Automattic and Mullenweg, accusing them of "abuse of power," extortion, and conflicts of interest in handling the WordPress project. The lawsuit claims that Automattic is using its position as the owner of the WordPress trademark to exert control over the open-source community and prevent other companies from using the trademark.
Automattic's response
Automattic responded to the lawsuit by dismissing WP Engine's claims as "meritless." The company's legal representative, Neal Katyal, stated that he had read WP Engine's complaint and found no merit to its claims.
Severance package
The latest development in the dispute is the announcement by Automattic that 159 employees, representing approximately 8.4% of the company's staff, have accepted a severance package offered by the company. The severance package provides employees with either $30,000 or six months of salary, whichever is higher, but the employees who take the package will not be eligible to be re-hired by Automattic.
Implications
The dispute between Automattic and WP Engine has significant implications for the future of the WordPress project. If Automattic is successful in defending its trademark claims, it could set a precedent for the use of trademarks in the open-source community. On the other hand, if WP Engine is successful in its lawsuit, it could lead to a shift in the balance of power in the WordPress ecosystem.
The severance package announced by Automattic has also raised questions about the treatment of employees at the company. Some employees have taken to social media to express their support for the company and Mullenweg, while others have hinted at a culture of fear and intimidation within the company.
Overall, the dispute between Automattic and WP Engine is a complex and contentious one, with significant implications for the future of the WordPress project.