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Matt Mullenweg v. WP Engine escalates

25 September 2024 at 17:29
Matt Mullenweg v. WP Engine escalates

Update, September 26, 2024: WordPress.org has banned websites hosted on WP Engine from accessing its resources. As someone put it on X, this is Matt Mullenweg dropping a giant turd into the laps of millions of WordPress users. I can't recommend this software any more in good conscience.


The Matt Mullenweg v. WP Engine dispute seems to be escalating, which is a bit of a surprise because it was so ill-founded to begin with. Yet the escalation has also been exponential.

Mullenweg published his post disparaging WP Engine on the WordPress.org site (from where you can download the open source WordPress CMS) on September 21.

Matt Mullenweg v. WP Engine
Automattic CEO and WordPress co-developer Matt Mullenweg published a post on September 21 calling WP Engine a “cancer to WordPress”. For the uninitiated: WP Engine is an independent company that provides managed hosting for WordPress sites; WordPress.com is owned by Automattic and it leads the development of WordPress.org.
Matt Mullenweg v. WP Engine escalatesClose ReadVasudevan Mukunth
Matt Mullenweg v. WP Engine escalates

On September 23, WP Engine said it had sent WordPress.com parent company and WordPress lead developer Automattic, whose CEO is Mullenweg, a cease and desist letter. Excerpt:

Stunningly, Automattic’s CEO Matthew Mullenweg threatened that if WP Engine did not agree to pay Automattic – his for-profit entity – a very large sum of money before his September 20th keynote address at the WordCamp US Convention, he was going to embark on a self-described “scorched earth nuclear approach” toward WP Engine within the WordPress community and beyond. When his outrageous financial demands were not met, Mr. Mullenweg carried out his threats by making repeated false claims disparaging WP Engine to its employees, its customers,and the world. Mr. Mullenweg has carried out this wrongful campaign against WP Engine in multiple outlets, including via his keynote address, across several public platforms like X, YouTube, and even on the Wordpress.org site, and through the WordPress Admin panel for all WordPress users, including directly targeting WP Engine customers in their own private WordPress instances used to run their online businesses.

💥

Later on the same day, Automattic sent a cease and desist letter of its own to WP Engine. Excerpt:

As you know, our Client owns all intellectual property rights globally in and to the world-famous WOOCOMMERCE and WOO trademarks; and the exclusive commercial rights from the WordPress Foundation to use, enforce, and sublicense the world-famous WORDPRESS trademark, among others, and all other associated intellectual property rights.We are writing about WP Engine’s web hosting and related services that improperly use our Client’s WORDPRESS and WOOCOMMERCE trademarks in their marketing.We understand that our Client has contacted you about securing a proper license to use its trademarks, yet no such agreement has been reached. As such, your blatant and widespread unlicensed use of our Client’s trademarks has infringed our Client’s rights and confused consumers into believing, falsely, that WP Engine is authorized, endorsed, or sponsored by, or otherwise affiliated or associated with, our Client. WP Engine’s unauthorized use of our Client’s trademarks also dilutes their rights, tarnishes their reputation, and otherwise harms the goodwill they have established in their famous and well-known trademarks, and has enabled WP Engine to unfairly compete with our Client, leading to WP Engine’s unjust enrichment.

Now it's a trademark dispute. Automattic is alleging people at large are confusing WP Engine with WordPress itself and that that's leading to loss of revenue for Automattic. Hang on to this thought while we move on to the next detail. At 10.34 pm IST on September 4, Mullenweg shared this tidbit in a Reddit comment:

[WP Engine] had the option to license the WordPress trademark for 8% of their revenue, which could be delivered either as payments, people (Five for the Future .org commitments), or any combination of the above.

Put all these details together and we understand Mullenweg is alleging via Automattic that people are confusing WP Engine with WordPress itself to Automattic's detriment, that WP Engine has wrongfully used the WordPress trademark, that what WP Engine is selling isn't WordPress but something it has reportedly "butchered", and that WP Engine's enrichment is unjust.

I think it's starting to stink for Mullenweg. As detailed in the previous post, WP Engine didn't "butcher" WordPress. In fact they didn't change anything about WordPress's core composition. They turned off a setting, didn't hide it, and offered a way to get around it by other means. WordPress is open source software provided under a GPL license, which means others are allowed to modify it (and subsequently avail it under the same license). So even if WP Engine modified WordPress — which it didn't — it would've been operating within its rights.

An opportunity to understand the GPL license
Featured image: Matt Mullenweg, 2009. Credit: loiclemeur/Flickr, CC BY 2.0. Every December, I wander over to ma.tt, the blog of WordPress founder Matt Mullenweg, to check what he’s saying about how the CMS will be shaping up in the next year. Despite my cribbings as well
Matt Mullenweg v. WP Engine escalatesClose ReadVM
Matt Mullenweg v. WP Engine escalates

Second, WP Engine was founded in 2010. Why is Automattic alleging a trademark violation after 14 years of being okay with it? Even if consumers are currently confusing WP Engine with WordPress itself — which I doubt — that Automattic didn't pursue a legal dispute in all this time is very fishy. It also creates new uncertainty for all the many other WordPress hosting companies that have "WP" in their names. On a related note, WP Engine is selling WordPress hosting and not WordPress itself as well as claims to have emails from Automattic staff saying using the "WP" short form is okay.

Another point of note here is whether 'WP' is covered by trademark. At some point in the recent past, the wordpressfoundation.org website updated its 'Trademark Policy' page to include an answer as well as some gratuitous remarks:

The abbreviation “WP” is not covered by the WordPress trademarks, but please don’t use it in a way that confuses people. For example, many people think WP Engine is “WordPress Engine” and officially associated with WordPress, which it’s not. They have never once even donated to the WordPress Foundation, despite making billions of revenue on top of WordPress.

Third, Mullenweg's demand that WP Engine cough up 8% of their revenue amounts to a demand for $40 million (Rs 334.5 crore). Considering Automattic has now pinned this demand to the wobbly allegation of wrongful trademark use, WP Engine seems increasingly in the right to dispute and not entertain his demands. Moreover, WP Engine's lawyers' letter suggests Mullenweg gave WP Engine a very small window within which to comply with this demand and, for added measure, allegedly threw in a threat. But then at 10.38 pm on September 24, Mullenweg said this on Reddit:

I would have happily negotiated from there, but they refused to even take a call. Their entire strategy has been to obscure and delay, which they tried to do on Friday. "Can we get the right folks together early next week?" They've been stringing us along for years, I'm the dummy for believing that they actually wanted to do anything. But making it right, now.

The reply to this comment by Reddit user u/ChallengeEuphoric237 is perfect:

If they don't believe they needed to pay, then why would they?

1/ If the fees were for the trademark, why weren't they going to the WordPress Foundation instead of Automattic?

2/ Why do they need to license the WordPress trademark? Stating they allow hosting as a product isn't a violation of trademark law, neither is using WP. You guys used to be an investor in the company for crying out loud.

WordPress and Automattic seem incredibly petty in all of this. Why did you *need* to do it during the keynote? Why did you *need* to make a huge stink at the booth? If this was a legal issue, let the lawyers sort it out instead of dragging the community through the mud. Everyone expected much more from you. I don't use WP Engine's products, but if someone came to me trying to extort 8% of my revenue on some flimsy trademark issue, I wouldn't be very responsive either.

"Can we get the right folks together early next week?"

Did you honestly expect them to agree to a nearly 40 million dollar annual charge via text message when you literally gave them what seems like an hour notice right before your keynote? Would you agree to that? I'm no lawyer, but that whole exchange seems like an exercise in extortion - threatening to destroy someones reputation unless they agree to something monetarily, which is a felony.

Let's see what the courts say, but you've lost a ton of clout in the community over this.

The subtext of Mullenweg's September 21 post seemed to be that private equity is cutting costs in a way that's eating into the aspirations and dues of open source software development. Then again, as many observers in the sector have said, this couldn't be the real issue because private equity is almost everywhere in the WordPress hosting space and singling out WP Engine made little sense. So the sub-subtext seemed to be that Mullenweg was unhappy about WP Engine eating into the revenue streams of WordPress.com and WordPress VIP (Automattic's elite hosting service). But after the events of the three days that followed, that sub-subtext seems likelier to be the whole issue.

On a final note, many people are kicking back with 🍿 and speculating about how this dispute could escalate further. But it's difficult for me personally to be entertained by this. While Mullenweg's September 21 post didn't in hindsight do a good job of communicating what his real argument was, he did suggest there was a problem with a model in which for-profit entities could springboard off the efforts of open-source communities that have volunteered their time and skills without the entities giving back. But dovetailing to u/ChallengeEuphoria237's concluding remark, conversations about that issue vis-à-vis WP Engine are now more unlikely to happen than they were before Mullenweg launched into this "making it right" campaign.

⌥ The Reddit and Google Pairing Is One of a Kind

By: Nick Heer
7 August 2024 at 03:51

Since owners of web properties became aware of the traffic-sending power of search engines — most often Google in most places — they have been in an increasingly uncomfortable relationship as search moves beyond ten relevant links on a page. Google does not need websites, per se; it needs the information they provide. Its business recommendations are powered in part by reviews on other websites. Answers to questions appear in snippets, sourced to other websites, without the user needing to click away.

Publishers and other website owners might consider this a bad deal. They feed Google all this information hoping someone will visit their website, but Google is adding features that make it less likely they will do so. Unless they were willing to risk losing all their Google search traffic, there was little a publisher could do. Individually, they needed Google more than Google needed them.

But that has not been quite as true for Reddit. Its discussions hold a uniquely large corpus of suggestions and information on specific topics and in hyper-local contexts, as well as a whole lot of trash. While the quality of Google’s results have been sliding, searchers discovered they could append “Reddit” to a query to find what they were looking for.

Google realized this and, earlier this year, signed a $60 million deal with Reddit allowing it to scrape the site to train its A.I. features. Part of that deal apparently involved indexing pages in search as, last month, Reddit restricted that capability to Google. That is: if you want to search Reddit, you can either use the site’s internal search engine, or you can use Google. Other search engines still display results created from before mid-July, according to 404 Media, but only Google is permitted to crawl anything newer.

It is unclear to me whether this is a deal only available to Google, or if it is open to any search engine that wants to pay. Even if it was intended to be exclusive, I have a feeling it might not be for much longer. But it seems like something Reddit would only care about doing with Google because other search engines basically do not matter in the United States or worldwide.1 What amount of money do you think Microsoft would need to pay for Bing to be the sole permitted crawler of Reddit in exchange for traffic from its measly market share? I bet it is a lot more than $60 million.

Maybe that is one reason this agreement feels uncomfortable to me. Search engines are marketed as finding results across the entire web but, of course, that is not true: they most often obey rules declared in robots.txt files, but they also do not necessarily index everything they are able to, either. These are not explicit limitations. Yet it feels like it violates the premise of a search engine to say that it will be allowed to crawl and link to other webpages. The whole thing about the web is that the links are free. There is no guarantee the actual page will be freely accessible, but the link itself is not restricted. It is the central problem with link tax laws, and this pay-to-index scheme is similarly restrictive.

This is, of course, not the first time there has been tension in how a site balances search engine visibility and its own goals. Publishers have, for years, weighed their desire to be found by readers against login requirements and paywalls — guided by the overwhelming influence of Google.

Google used to require publishers provide free articles to be indexed by the search engine but, in 2017, it replaced that with a model that is more flexible for publishers. Instead of forcing a certain number of free page views, publishers are now able to provide Google with indexable data.

Then there are partnerships struck by search engines and third parties to obtain specific kinds of data. These were summarized well in the recent United States v. Google decision (PDF), and they are probably closest in spirit to this Reddit deal:

GSEs enter into data-sharing agreements with partners (usually specialized vertical providers) to obtain structured data for use in verticals. Tr. at 9148:2-5 (Holden) (“[W]e started to gather what we would call structured data, where you need to enter into relationships with partners to gather this data that’s not generally available on the web. It can’t be crawled.”). These agreements can take various forms. The GSE might offer traffic to the provider in exchange for information (i.e., data-for-traffic agreements), pay the provider revenue share, or simply compensate the provider for the information. Id. at 6181:7-18 (Barrett-Bowen).

As of 2020, Microsoft has partnered with more than 100 providers to obtain structured data, and those partners include information sources like Fandango, Glassdoor, IMDb, Pinterest, Spotify, and more. DX1305 at .004, 018–.028; accord Tr. at 6212:23–6215:10 (Barrett-Bowen) (agreeing that Microsoft partners with over 70 providers of travel and local information, including the biggest players in the space).

The government attorneys said Bing is required to pay for structured data owing to its smaller size, while Google is able to obtain structured data for free because it sends partners so much traffic. The judge ultimately rejected their argument Microsoft struggled to sign these agreements or it was impeded in doing so, but did not dispute the difference in negotiating power between the two companies.

Once more, for emphasis: Google usually gets structured data for free but, in this case, it agreed to pay $60 million; imagine how much it would cost Bing.

This agreement does feel pretty unique, though. It is hard for me to imagine many other websites with the kind of specific knowledge found aplenty on Reddit. It is a centralized version of the bulletin boards of the early 2000s for such a wide variety of interests and topics. It is such a vast user base that, while it cannot ignore Google referrals, it is not necessarily reliant on them in the same way as many other websites are.

Most other popular websites are insular social networks; Instagram and TikTok are not relying on Google referrals. Wikipedia would probably be the best comparison to Reddit in terms of the contribution it makes to the web — even greater, I think — but every article page I tried except the homepage is overwhelmingly dependent on external search engine traffic.

Meanwhile, pretty much everyone else still has to pay Google for visitors. They have to buy the ads sitting atop organic search results. They have to buy ads on maps, on shopping carousels, on videos. People who operate websites hope they will get free clicks, but many of them know they will have to pay for some of them, even though Google will happily lift and summarize their work without compensation.

I cannot think of any other web property which has this kind of leverage over Google. While this feels like a violation of the ideals and principles that have built the open web on which Google has built its empire, I wonder if Google will make many similar agreements, if any. I doubt it — at least for now. This feels funny; maybe that is why it is so unique, and why it is not worth being too troubled by it.


  1. The uptick of Bing in the worldwide chart appears to be, in part, thanks to a growing share in China. Its market share has also grown a little in Africa and South America, but only by tiny amounts. However, Reddit is blocked in China, so a deal does not seem particularly attractive to either party. ↥︎

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