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Automattic and Matt Mullenweg Push for Dismissal of Key Claims in WP Engine Lawsuit – WP Tavern

Automattic and Matt Mullenweg have filed a response asking the court docket to dismiss counts 1-6 and 11th of September of  WP Engine’s lawsuit. WP Engine had filed a movement on October 18, 2024 for a preliminary injunction in a Northern California court docket, looking for restored entry to WordPress.org and a reversion to circumstances as of September 20, 2024. 

In response, Automattic has filed three key paperwork: a Movement to Dismiss WP Engine’s Grievance, a Movement to Strike, and the Opposition to WP Engine’s Preliminary Injunction.

Automattic additionally tweeted, “Right this moment, with the intention to shield the group from the risk posed by @WPEngine’s conduct, we’ve filed three paperwork with the court docket. These paperwork reply to WP Engine’s cherry-picked variations of occasions with crucial context not discovered of their authorized filings.”

Let’s check out the details within the paperwork.

Movement to Dismiss WP Engine’s Grievance 

The Motion to Dismiss begins with the introduction, “Opposite to the allegations in WP Engine’s Grievance, the perpetrator chargeable for the harms in opposition to the WordPress group isn’t Automattic or Matt Mullenweg (“Matt”). It’s WP Engine itself. Regardless of its personal (mis)conduct, WP Engine’s Grievance now asks this Courtroom to compel Matt to offer varied sources and help to non-public equity-backed WP Engine at no cost, within the absence of any contract, settlement, or promise to take action. The Grievance additionally seeks to limit Matt’s capability to precise brazenly his perspective that WP Engine’s practices negatively affect the WordPress software program platform and group—a platform and group that has been his life’s work. There isn’t a authorized or factual foundation for the Courtroom to compel such entry or prohibit such speech.”

The movement argues that “WP Engine’s criticism is stuffed with sound and fury, however WP Engine’s allegations finally signify nothing. Beneath the Grievance’s tone of indignation lies an utter absence of any factual allegations that do or may plausibly state a declare for aid. The Grievance strains mightily and misleadingly to conflate the WordPress software program with Matt’s Web site and with the WordPress emblems, however it’s devoid of any details establishing that Matt has any obligation to offer the sources on the Web site to WP Engine.”

It states that “WP Engine’s misleadingly curated Grievance focuses solely on the occasions of the final two months, however this story really begins over twenty years in the past, when Matt created a brand new solution to construct web sites.”

“Opposite to the allegations of the Grievance, Automattic, based by Matt in 2005, doesn’t personal the WordPress software program however fairly gives three managed WordPress internet hosting companies, WordPress.com for on a regular basis customers; Pressable, for businesses and builders; and WordPress VIP, for high-end enterprise websites together with WhiteHouse.gov, NASA, Salesforce, and CNN. The WordPress ecosystem can be supported by the WordPress Basis (“Basis”)—a 501(c)(3) public profit company devoted to educating the general public about WordPress and open supply software program. The position of the Basis is charitable, instructional, and scientific.”

The movement particulars the numerous time and sources that Matt and Automattic contribute to WordPress.org. “Matt is the proprietor of the WordPress.org area title. Matt created the Web site to help the WordPress group and software program. Over time, the content material the Web site offers has turn into extra strong. It takes vital sources from Matt and others to take care of the Web site. For instance, Matt and different staff of Automattic contribute over 3,500 hours weekly to help and preserve the Web site, together with the core software program and different options provided by the Web site.”

The movement accuses WP Engine of leveraging WordPress sources for revenue whereas failing to contribute meaningfully again to the group and profiting off the goodwill of the WordPress and WooCommerce emblems. It alleges that WP Engine’s shift in practices started in 2018 when personal fairness agency Silver Lake took majority management, resulting in intensified trademark use and an elevated profit-driven focus. 

Alleging trademark violations since 2021, the movement claims that WP Engine and Silver Lake have tried to revenue from WordPress’s fame with out bearing a share of the tasks. Matt had requested that WP Engine both license the WordPress emblems or dedicate eight % of its income to the additional growth of the open supply WordPress software program, however WP Engine declined.

When it grew to become abundantly clear to Matt that WP Engine had little interest in giving again, Matt was left with two selections: (i) proceed to permit WP Engine to unfairly exploit the free sources of the Web site, use the WordPress and WooCommerce emblems with out authorization, which might additionally threaten the very existence of these emblems, and stay silent on the unfavorable affect of its conduct or (ii) refuse to permit WP Engine to try this and demand publicly that WP Engine do extra to help the group.

The movement additionally states, “The mere incontrovertible fact that WP Engine made the dangerous determination to base its rising enterprise on a web site to which it has no rights or assure of entry, with out making backup plans, isn’t sufficient for it to conjure a declare out of authorized skinny air. Equally, WP Engine’s enterprise determination to depend on Matt’s Web site doesn’t present any authorized or factual foundation for muzzling Matt and stopping him from criticizing WP Engine for acts that he believes are damaging the WordPress group.” 

It continues, “The actual illegal exercise right here is WP Engine’s infringement of the WordPress and WooCommerce emblems. This infringement was so egregious that within the days previous to submitting this lawsuit, WP Engine scurried to delete varied unauthorized makes use of of the WordPress and WooCommerce emblems from its web site—a tacit acknowledgement of their infringing nature.”

In brief, WP Engine’s criticism fails to state claims regarding intentional interference with contractual relations, tortious interference with potential financial benefit, Laptop Fraud and Abuse Act violations, tried extortion, and unfair competitors underneath California Enterprise and Professions Code § 17200.

Movement to Strike 

Automattic and Matt Mullenweg have moved to strike parts of WP Engine’s complaint, citing California’s anti-SLAPP legislation. They argue that WP Engine’s  “claims fail as a matter of legislation and should be struck underneath California’s anti-SLAPP legislation as a result of they improperly search to impose legal responsibility for commentary and debate on a difficulty of public curiosity—specifically, WP Engine’s dedication (or lack thereof) to the WordPress group – with none legitimate foundation. WP Engine’s try and stifle public dialogue of these points by way of these claims violates California legislation and ought to be stopped right here.”

The movement additionally asserts,  “Matt was talking and writing in his particular person capability as WordPress’s co-founder, and never as CEO of Automattic. There isn’t a foundation to impute his statements to the corporate. For these and different causes, WP Engine’s ninth, tenth, and eleventh causes of motion ought to be stricken.”

WP Engine’s defamation claims are primarily based on statements Mullenweg made on public platforms, which his attorneys argue are protected by the First Modification and California legislation. 

Mullenweg’s feedback about WP Engine’s “parasitic” conduct had been a part of a broader dialog on the tragedy-of-the-commons principle, explaining the crucial significance of significant, sustained contributions to the WordPress group by the 5 for the Future initiative. In addition to, WP Engine doesn’t problem any of Matt’s statements. 

WP Engine’s commerce libel declare fails to plausibly allege one other required factor: WP Engine has not recognized any particular third get together who was deterred from conducting enterprise with WP Engine because of Matt’s Statements. 

Opposition to WP Engine’s Preliminary Injunction

Automattic and Matt have requested the denial of WP Engine’s motion, arguing that “WP Engine conflates the open supply WordPress software program with an internet site situated at wordpress.org (“Web site”) that’s supplied by Matt. The Web site is distinct from the WordPress open supply software program platform and each are distinct from Automattic and the WordPress Basis, a nonprofit public profit company that was organized completely for charitable, scientific and academic functions, not industrial endeavors. WP Engine’s CEO Heather Brunner feigns ignorance and reliance on a false understanding that an academic basis was chargeable for the Web site that gives sources for industrial endeavors.”

WP Engine has at all times had unrestricted entry to the open-source WordPress software program and plugins, which don’t require login credentials. The one sources it can’t entry are sure developer instruments on WordPress.org, beforehand used to handle plugin variations. WP Engine rapidly restored its misplaced performance by internet hosting its plugins independently by itself web site.

WP Engine additionally seeks to restrict competitors by asking the Courtroom to stop Matt from criticizing its actions and to limit Automattic from providing promotional incentives to customers. Automattic contends that WP Engine’s purported damages, equivalent to buyer losses, end result from WP Engine’s service high quality fairly than any actions by the defendants.

Additionally “Matt doesn’t and by no means has had any contracts, agreements, or obligations to offer WP Engine entry to the Web site. Nor did WP Engine pay any working prices in the direction of the Web site or to entry the Web site for this comfort.”

After shedding entry, WP Engine carried out an answer restoring its workflow by linking its plugins to its personal servers. This setup has been operational for over a month, making any claimed hurt from entry denial both nonexistent or resolved.

Since ACF plugin has over two million lively installs, so any safety vulnerability inside ACF would threaten a considerable portion of the WordPress group, the WordPress safety crew forked that plugin, and named that fork SCF. The general public was additionally notified of the developments.

“WP Engine skilled a lack of earnings or capital in that intervening interval, these losses are the results of its determination to freeride off the Web site and Matt’s in depth efforts to help and preserve the Web site, all of the whereas figuring out it had no contractual settlement entitling it to the continued receipt of these sources. WP Engine gambled, for the sake of revenue, on Matt’s continued upkeep and provision of the Web site at no cost. Having misplaced that guess, it can’t now come to the Courtroom complaining of the implications.”

If an injunction is taken into account, the defendants argue that it ought to solely cowl entry to WordPress software program and plugins. WP Engine must also be required to put up a bond compensating Matt for any companies he may be compelled to offer, in addition to Automattic for any misplaced income as a result of restricted competitors. Sustaining WordPress.org includes annual administrative and operational prices estimated at $800,000. If WP Engine is granted ongoing entry, a bond of a minimum of $1.6 million ought to be posted to cowl these companies for the case’s anticipated two-year period.

Automattic has additionally issued the next public statement by its weblog:

“After partaking in conduct that undermines the WordPress group, WP Engine and its personal fairness proprietor, Silver Lake, have resorted to creating unfounded allegations in opposition to the founder and vanguard of the open supply software program.”

“WordPress open supply software program stays freely accessible to all. However WP Engine isn’t entitled, both legally or morally, to have unfettered entry to WordPress.org—an internet site Matt Mullenweg constructed for the advantage of a strong group.”

“Preserving and sustaining the sources made accessible on WordPress.org requires appreciable effort, funding, and a shared sense of mission that the plaintiff doesn’t embrace. WP Engine and Silver Lake shouldn’t anticipate to revenue off the again of others with out carrying a number of the weight, and that’s all that Matt is asking.”

The court docket will subsequent maintain a listening to on November 26, 2024 and WP Engine has till November 4 to answer Automattic and Mullenweg’s filings.

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