As the Automattic-WP Engine controversy continues, Automattic published the term sheet delivered to WP Engine on September 20, 2024. “In the interest of transparency, we’ve published the term sheet we offered to @LeeEWittlinger and @heatherjbrunner, it’s a simple one-pager.”, tweeted Matt Mullenweg.
The announcement post reveals that initial discussions between Automattic and WP Engine began in February 2023, led by Matt Mullenweg and continued by Toni Schneider during Mullenweg’s sabbatical.
The term sheet outlines five key points regarding a trademark license agreement. Under the terms, Automattic would grant WP Engine the rights to use WordPress and WooCommerce trademarks and branding, with WP Engine agreeing to follow all relevant guidelines. WP Engine was presented with three options for compensation:
Pay Automattic a royalty fee of 8% of its gross revenue on a monthly basis, along with a detailed report of its gross revenue, granting Automattic full audit rights. Allocate 8% of its revenue to employee salaries for work on core WordPress features under the direction of WordPress.org, with both WordPress.org and Automattic retaining audit rights. Combination of the above two options.
The term sheet also prevents WP Engine from modifying or forking any software from Automattic, WooCommerce, or its affiliates. The agreement is for seven years with automatic one-year renewals.
However, the announcement post has a critical update: “Given WP Engine’s behavior, deception, and incompetence since September 20th these terms are no longer sufficient.”
Matt also told The Repository, “That deal’s not on the table anymore. We’re seeking more, not 8%. I don’t want to speculate on what the deal might be… In July it was less than 8%, it was smaller. In September it was 8%. The deal they have to do next could be taking over the company, they have no leverage.”
Public reactions to Mullenweg’s tweet sharing