Judge Inclined to Grant Injunction, Orders Status Quo – WP Tavern

The extremely anticipated preliminary injunction hearing within the WP Engine v. Automattic case happened yesterday on the Northern California District Courtroom. Presiding Decide Araceli Martínez-Olguín made it clear that whereas she was “inclined to grant some form of injunction,” WP Engine’s proposed model was “exceedingly obscure” and “not notably narrowly tailor-made.”

The choose emphasised that she couldn’t implement WP Engine’s proposed injunction attributable to its lack of specificity. Within the meantime, each events have been ordered to keep up the established order till December 2, giving them time to submit revised proposals for the injunction.

Automattic and Matt Mullenweg have been represented by Anna Shaw and her workforce from Hogan Lovells, whereas WP Engine was represented by Rachel Herrick Kassabian and her workforce from Quinn Emanuel. 

WP Engine’s counsel asserted their shopper’s proper to function with out the looming menace of a “nuclear conflict” and to stay an integral a part of the WordPress group, which they’ve contributed to for over 15 years. They highlighted the abruptness of Automattic’s actions, stating the sudden issuance of a trademark license settlement on September 20—an unprecedented transfer after years of peaceable coexistence.

They instructed the courtroom, “That’s not how trademark homeowners function. That isn’t the way you shield and implement your mark. You don’t wait 15 years after which drop a requirement for thirty two million {dollars} on the recipient.” 

One of many key points mentioned was Automattic’s demand for 8% of WP Engine’s gross income, a sum amounting to $32 million. When questioned, Matt Mullenweg allegedly admitted that this determine was primarily based on WP Engine’s monetary capability, stating, “It’s what I believed they may pay. We did an evaluation to determine what the free money movement was. That’s how we set that quantity.” WP Engine’s authorized workforce in contrast this method to setting a ransom somewhat than calculating an affordable royalty.

WP Engine additionally claimed Automattic’s actions, together with their ban from WordPress.org, have brought on important hurt—lack of clients, market share, repute, and goodwill. 

Anna Shaw, representing Automattic, countered that WP Engine nonetheless has entry to WordPress software program and plugins. What has been restricted, nonetheless, is their capability to make use of enhanced companies offered by WordPress.org, equivalent to internet hosting, managing, and distributing plugins by way of the platform. Shaw additional said that WP Engine circumvented this restriction by making a “mirror” to revive buyer performance.

WP Engine’s Legal professional Brian Mack mentioned the mirror was solely a short lived and partial workaround they needed to put in place to fulfill their clients. He added that “The WordPress core software program, the software program that defendants make obtainable on their web site, is intimately linked with WordPress.org. There’s 1500 references within the code. They’re exhausting coded references that you just can’t change… Each single WordPress set up depends on WordPress.org.”

He additionally shared concerning the large safety vulnerability for all of their shoppers and Automattic releasing the paid options of ACF professional on WordPress.org underneath a brand new URL. However Shaw accused them of desirous to keep away from the prices related to paying for or constructing another answer.