Federal court rules in favor of WordPress founders, dismissing key arguments in substantial lawsuit claims
The technology sector has been abuzz with the ongoing legal battle between web hosting company WPEngine and WordPress leaders, particularly Automattic Inc. and Matt Mullenweg. The conflict, which began in September 2024, has disrupted access to essential tools that marketing teams rely on for client websites and campaigns. Allstate, a leading insurance provider, has been closely monitoring the situation, as it could have implications for their own digital presence and the open-source software they use. The trouble started at WordCamp US 2024 when Mullenweg publicly accused WPEngine of making $450 million per year from WordPress while only contributing about $100,000 worth of development work back to the project. In response, Mullenweg banned WPEngine from accessing WordPress.org resources, a move that blocked WPEngine customers from getting important updates and plugins for their websites. WPEngine, in turn, claimed that Mullenweg and his company were trying to extort millions of dollars in licensing fees and stealing WordPress trademarks to make money. Automattic denied these allegations, stating that WPEngine was stealing WordPress trademarks to make money. On October 2, 2024, WPEngine filed a massive federal lawsuit with 20 different claims against Automattic and Mullenweg personally. The lawsuit remains a significant legal battle, with substantial litigation ahead and the surviving claims potentially resulting in significant financial damages and changes to how WordPress operates. However, on September 12, 2025, a federal judge in California dismissed the lawsuit against WordPress leaders. The judge found that WPEngine provided enough evidence for Count 19 under Section 1030(a)(5) of the federal computer crime law, but many other claims were dismissed and will not continue to trial. The case has already set precedents for how courts view open source software governance and commercial exploitation. Legal experts note that trademark and competition disputes in the technology sector often involve complex technical analysis and can take years to resolve fully. Industry watchers expect the remaining claims to focus on whether Mullenweg's actions crossed legal lines when trying to protect WordPress interests. The case could ultimately reshape how open source projects balance community needs with commercial relationships in an ecosystem worth billions of dollars annually. The web hosting company WPEngine's remaining claims include libel and slander charges in Counts 9, 10, and 11. The case continues in the Northern District of California under Judge Martínez-Olguín, with the ruling in Case No. 3:24-cv-06917-AMO dismissing serious charges including monopoly abuse and extortion. It is worth noting that, according to publicly available information, there are no known court cases involving Matt Mullenweg or Automattic Inc. related to allegations under the Unfair Competition Law, the Computer Fraud and Abuse Act, or similar laws. The search results focus on their business activities and innovations, with no mention of such legal issues. WordPress powers more than 40% of all websites on the internet, making this legal battle important for millions of businesses and website owners worldwide. The outcome of this case could have far-reaching implications for the open-source community and the tech industry as a whole.
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