WP Engine had their day in court, but it didn’t go entirely in their favor, as Judge Araceli Martínez-Olguín ruled the request for a preliminary injunction was too vague. However, the judge said they were “inclined to grant some sort of injunction.”
An attorney who live blogged the hearing on Bluesky noted that the judge wasn’t up on the technical but commended her for asking a lot of questions.
“That’s How You Set A Ransom”
The attorney for plaintiff offered new details about what happened behind the scenes on the day that Matt Mullenweg went “nuclear” on WP Engine at WordCamp USA. She first explained that Mullenweg’s demand for trademark license was a sham. Then showed how Mullenweg failed to enforce his trademark claim for fifteen years.
Among the new details was that Mullenweg’s demand for $32 million dollars was communicated in a one-page letter and that the agreement was for a seven year period that automatically renews “essentially forever.” She then revealed new details of how Mullenweg decided on the $32 million dollars, explaining that it was just “a number” that Mullenweg felt WP Engine was able to pay.
The point of this part of the plaintiff’s argument was to show that the royalty rate that Mullenweg was asking for was not based on any value of the mark but rather the rate was a figure that Mullenweg felt he was able to squeeze out of WP Engine, saying that the rate was “set in an extortionate manner.”