WP Engine Sues WordPress for Libel, Extortion

WP Engine, a major web hosting provider, has filed a federal lawsuit against WordPress [PDF] co-founder Matt Mullenweg and Automattic, alleging libel and attempted extortion. The suit stems from a public dispute over WordPress trademark usage and open-source licensing.

WP Engine, which hosts over 200,000 websites, accuses Mullenweg and Automattic of 'abuse of power, extortion, and greed.' The conflict escalated after Mullenweg called WP Engine a 'cancer to WordPress' on his blog, prompting a cease-and-desist letter. Automattic subsequently demanded 8% of WP Engine's monthly revenue as royalties for alleged trademark infringement. The lawsuit includes 11 complaints, ranging from slander to violations of the Computer Fraud and Abuse Act.

Read more of this story at Slashdot.