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.

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