In reply to dainis.

a bit of a correction/typo: you do mean “in their domain name” and not “in their top level domain,” because we are not talking about

domainnames.wordpress

Good catch. ;)

Yes, I meant after the TLD such as but not limited to, .com, .net, .me, etc.

The text that the WordPress Foundation uses is very clear that using wordpress in wordpress.yourdomain.here and yourdomain.here/wordpress is acceptable.

In fact when in the agreement that's been posted here that section starts with the following.

c. Consistent with the WPF policy regarding domain names...

The WordPress Foundation policy has been saying that for years. It's nice to see that that policy is re-affirmed to remind litigants of what's been there for everyone all this time.