WP Engine Vs Automattic: Judge Inclined To Grant Preliminary Injunction via @sejournal, @martinibuster

WP Engine had their time successful court, but it didn’t spell wholly successful their favor, arsenic Judge Araceli Martínez-Olguín ruled the petition for a preliminary injunction was excessively vague. However, the justice said they were “inclined to assistance immoderate benignant of injunction.”

“That’s How You Set A Ransom”

The lawyer for plaintiff offered caller details astir what happened down the scenes connected the time that Matt Mullenweg went “nuclear” connected WP Engine astatine WordCamp USA. She archetypal explained that Mullenweg’s request for trademark licence was a sham. Then showed however Mullenweg failed to enforce his trademark assertion for 15 years.

Among the caller details was that Mullenweg’s request for $32 cardinal dollars was communicated successful a one-page missive and that the statement was for a 7 twelvemonth play that automatically renews “essentially forever.” She past revealed caller details of however Mullenweg decided connected the $32 cardinal dollars, explaining that it was conscionable “a number” that Mullenweg felt WP Engine was capable to pay.

The constituent of this portion of the plaintiff’s statement was to amusement that the royalty complaint that Mullenweg was asking for was not based connected immoderate worth of the people but alternatively the complaint was a fig that Mullenweg felt helium was capable to compression retired of WP Engine, saying that the complaint was “set successful an extortionate manner.”

WP Engine’s lawyer offered this communicative of events:

“We cognize that defendants had nary close to connection that, punctuation unquote, work due to the fact that it is simply a pretext. It is simply a sham. …You look astatine the record. We spot that for 15 years, WP Engine was making nominative just usage of the WordPress people arsenic the full assemblage did for 15 years without truthful overmuch arsenic a enarthrosis tap. ‘Excuse me.’ ‘Here’s an email.’ ‘Here’s a text.’ ‘Here’s a cease and desist letter.’  Nothing.

Nothing whatsoever, until the greeting of September 20th erstwhile we person this 1 leafage bizarre trademark licence agreement. That’s not however trademark owners operate. That is not however you support and enforce your mark. You don’t hold 15 years and past driblet a request for 30 2 cardinal dollars connected the recipient.

We besides cognize from the terms set, …this 1 leafage licence listed a terms of 8 percent of WP Engines gross revenues, which happens to magnitude to 30 2 cardinal dollars. And it acceptable that terms for a 7 twelvemonth play to automatically renew fundamentally forever.

And erstwhile asked, however did you acceptable that price? Mr. Mullenweg, suspect Matthew Mullenweg, acknowledged, “it’s what I thought they could pay. We did an investigation to fig retired what the escaped currency travel was. That’s however we acceptable that number.” That’s not however you cipher a royalty. That’s however you acceptable a ransom.”

Judge Questioned WP Engine’s Attorneys

There was a constituent successful the proceedings wherever the Judge Araceli Martínez-Olguín asked WP Engine’s attorneys what close to continued acces did they person without paying immoderate benignant of license.

WP Engine’s lawyer answered:

“So there’s conscionable simply nary transportation there, your Honor, whatsoever. The trial is not: does WP Engine person a close to beryllium escaped from a trademark license?”

The lawyer besides pointed retired that escaped entree to WordPress.org was the “status quo” for 15 years, which changed connected September 20th erstwhile Mullenweg initiated his quality with WP Engine.

Automattic’s Defense Tactic

The lawyer for Automattic and Mullenweg argued respective method points arsenic to wherefore the justice should not assistance an injunction. One cardinal constituent was that WP Engine’s extortion claim, nether California law, fails due to the fact that California courts bash not admit a backstage origin of enactment for attempted extortion nether the California Penal Code.

They past constituent retired that the lawsuit instrumentality WP Engine’s lawyer is relying connected (Tran v. Winn) concerns a antithetic ineligible conception (duress and rescission) alternatively than extortion. They said that the plaintiff’s ineligible mentation doesn’t lucifer extortion claims and involves antithetic ineligible principles.

Automattic’s lawyer past follows that up by stating that adjacent if WP Engine could usage the Tran v. Winn lawsuit law, the plaintiff’s statement inactive fails nether the different lawsuit instrumentality they are citing to basal their claims connected (Levitt case). They reason that the plaintiff cannot conscionable the ineligible modular for economical extortion due to the fact that they are incapable to amusement that the suspect had nary close to request outgo for the services successful question.

An statement made by Automattic’s lawyer astir the trademark licence request is that the plaintiffs omit a 2nd enactment successful the license, which was to supply unpaid hours equivalent to the payment. Shaw besides pointed retired that Mullenweg had made a notation to negotiating the presumption the pursuing week, but WP Engine ne'er responded to his message.

The lawyer said:

“…there is simply a substance from Mr. Mullenweg successful which helium says, oregon helium makes notation to adjacent negotiating the presumption the pursuing week. They conscionable ne'er responded to Mr. Mullenweg’s response.”

What The Judge Said

Judge Araceli Martínez-Olguín had a batch to untangle, with possibly the main happening being that WP Engine’s injunction was excessively vague.

The justice gave an denotation of what absorption she was leaning but besides explained that the petition was a “non-starter.”

“Having reviewed everything, I americium inclined to assistance immoderate benignant of injunction. Here’s the occupation that I person with your projected injunction, though. This is simply a nonstarter due to the fact that it is exceedingly vague.”

The justice past encouraged the parties to enactment unneurotic to constrictive down the preliminary injunction to thing that isn’t vague and failing that they could taxable “dueling submissions.” There was immoderate backmost and distant astir what day to instrumentality to tribunal with, with WP Engine asking for a Friday day and yet agreeing to instrumentality connected Tuesday, December 3rd.

Reaction To Preliminary Injunction Hearing

A lawyer unrecorded blogging the proceedings connected Bluesky wrote up their take connected what happened:

“I knew that WPE was successful precise bully signifier erstwhile the opening question was “tell maine astir your 1 champion shot” due to the fact that that’s not mostly a question you’d inquire if you thought thing had immoderate merit.

I thought that tortious interference was the champion shot. I’m beauteous definite WordPress’s lawyers did too.”

And followed up with:

“I was reasonably definite that this was leaning toward a assistance connected the PI. I deliberation that Automattic was adjacent to getting their alternative, but Mack whitethorn person saved things with his tech locomotion through.”

He offered a bully sentiment astir the judge, saying that she appears to admit that immoderate of the method issues are extracurricular of her country of expertise and that she expressed a willingness to inquire questions to amended understand.

He offered his opinion astir the justice and the last outcome:

“It’s wide that the Judge isn’t overly method successful her background, but is alert of that and is consenting to perceive attentively – this is precise good, and not a cosmopolitan national justice trait.

It volition beryllium absorbing to spot what we get connected Monday.

Almost certainly, dueling proposals.”

This summary of what happened successful tribunal is based connected a live blog and a post connected Bluesky by a lawyer of the proceedings implicit Zoom.

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