WordPress Maker Files Counterclaims Against WP Engine Over Trademark Use

Automattic has filed counterclaims against WP Engine in a lawsuit the hosting company initiated in October 2024. The counterclaims accuse WP Engine of trademark infringement and deceptive marketing practices. After private equity firm Silver Lake invested $250 million in WP Engine, the hosting company began calling itself "The WordPress Technology Company" and allowed partners to refer to it as "WordPress Engine," the lawsuit says. WP Engine also launched products named "Core WordPress" and "Headless WordPress."

The counterclaims allege that WP Engine promised to commit 5% of its resources to the WordPress ecosystem but failed to keep those promises. Automattic contends that WP Engine engaged in trademark violations to avoid licensing fees that would have affected the company's earnings and valuation. Silver Lake sought to sell WP Engine at a $2 billion valuation but could not find a buyer. The filing notes that potential buyers included Automattic. The counterclaims also assert that WP Engine degraded product quality and removed essential features to reduce costs during this period.