New court filings reveal that WP Engine claims Automattic planned to impose similar royalty fees on at least 10 other hosting companies. The allegations emerged in a February 10, 2026, update to the ongoing legal battle between the two WordPress ecosystem giants. WP Engine states that internal Automattic documents show a broader monetization strategy targeting multiple hosting providers.
The dispute originally began in 2024 when Automattic leadership, including company founder Matt Mullenweg, publicly criticized WP Engine. Mullenweg famously called WP Engine a “cancer” on the WordPress community during WordCamp US. The controversy centered around trademark royalty demands and disagreements over open source contribution levels. WP Engine subsequently filed suit, achieving early legal victories in the case.
Now, WP Engine claims Automattic documents reveal that the company internally categorized potential targets for royalty fee demands. The documents allegedly identify at least 10 other companies that “could be approached” to pay similar trademark royalty fees. The proposed fee structure reportedly mirrored the 8 percent royalty demanded from WP Engine.
Internal Categorization Revealed
According to the WP Engine claims, Automattic internally categorized these companies into three distinct groups. The first group, labeled “Friends,” includes companies already paying fees to Automattic. The filing cites Newfold Digital, which owns Bluehost and HostGator, as an example of this category. The second group, termed “Would-be friends,” includes companies like WP Engine that received royalty demands. The third and most concerning category, labeled “Charlatans,” allegedly represents candidates for aggressive competitive action.
The court documents reportedly contain redactions for the remaining company names. There is also no information confirming what percentage, if any, other companies currently pay to Automattic. The new filing suggests the strategy extended far beyond the single dispute with WP Engine that became public in 2024.
WP Engine claims Automattic leadership also allegedly contacted Stripe in an attempt to affect WP Engine’s payment processing relationship. This allegation, if proven, would represent a significant escalation in competitive tactics. Interfering with a competitor’s payment processor could potentially raise antitrust concerns separate from the trademark issues.
Legal Filing Details
These WP Engine claims appear in a Third Amended Complaint filed in the Northern District of California, Case No. 3:24-cv-06917. WP Engine states that these details come from documents previously sealed and now included in the case record. The new material suggests the royalty fee demands were part of a coordinated strategy rather than an isolated dispute.
The difference in this latest filing is not a new percentage or new pricing formula. Instead, WP Engine claims Automattic pursued a broader monetization strategy aimed at multiple hosting providers. The alleged tactics reportedly went beyond just contract negotiations, including the Stripe contact claim.
Automattic has responded to the new filing by characterizing it as old news. The company’s position, cited in reports, states that WP Engine is “repackaging previously raised allegations rather than presenting truly novel facts.” Automattic maintains that the new filing contains nothing substantively new, though this position is public commentary rather than part of the court record.
Industry Implications
If the WP Engine claims prove accurate, the implications for the hosting industry could be substantial. Many hosting companies build their businesses around WordPress, the world’s most popular content management system. Trademark royalty fees could fundamentally alter the economics of WordPress hosting.
The categorization system described in the filings suggests Automattic viewed the hosting landscape in strategic terms. Companies already paying fees enjoyed “Friend” status. Those resisting faced potential competitive pressure. The “Charlatans” category implies some companies might face aggressive action beyond mere fee demands.
Newfold Digital’s inclusion as an example of a “Friend” paying company raises questions about industry practices. As owner of Bluehost and HostGator, Newfold represents one of the largest WordPress hosting providers globally. If Newfold pays royalties to Automattic, that arrangement has not been publicly disclosed previously.
Stripe Allegation Significance
The alleged contact with Stripe represents a potentially serious escalation. Payment processing represents a critical function for any hosting company. If a competitor can disrupt that relationship, the business impact could be severe. WP Engine claims Automattic leadership reached out to Stripe specifically regarding WP Engine’s processing relationship.
Such conduct, if proven, might cross lines that trademark disputes do not. Antitrust regulators could potentially take interest in allegations of interference with competitor business relationships. The claim adds a new dimension to what began as a trademark and open source governance dispute.
The WordPress community has watched the legal battle with concern. WordPress powers over 40 percent of the web, and its ecosystem depends on cooperation between companies. Automattic, as the commercial entity behind WordPress.com and a major contributor to open source WordPress, holds significant influence. WP Engine represents one of the largest managed WordPress hosting providers. Their dispute has polarized community opinion.
Document Sealing and Transparency
The fact that these WP Engine claims emerged from previously sealed documents raises transparency questions. Court records often remain sealed to protect sensitive business information. However, when those documents contain allegations of industry-wide strategies, public interest may favor disclosure.
WP Engine clearly believes these documents strengthen their case. The claim that Automattic planned similar demands for at least 10 other companies suggests a pattern of behavior rather than an isolated dispute. If other hosting companies now come forward with similar experiences, the legal landscape could shift further.
Automattic’s dismissal of the filing as rehashing old theories may prove persuasive to the court. Alternatively, the new details about internal categorizations and the Stripe allegation could open new lines of inquiry. The court will ultimately determine which arguments carry weight.
As this case progresses, the broader hosting industry watches closely. If WP Engine claims Automattic successfully established royalty fees across the industry, the financial implications would ripple through countless businesses. If WP Engine defeats these demands, the precedent could protect other hosting companies from similar pressures. The outcome will shape WordPress ecosystem economics for years to come.
