WotC Announces OGL 1.1 -- Revised Terms, Royalties, and Annual Revenue Reporting

There has been a lot of speculation recently about WotC's plans regarding the Open Gaming License and the upcoming One D&D. Today, WotC shared some information.

In short, they will be producing a new Open Gaming License (note that the previous OGL 1.0a will still exist, and can still be used). However, for those who use the new OGL 1.1, which will be released in early 2023, there will be some limitations added with regards the type of product which can use it, and -- possibly controversially -- reporting to WotC your annual OGL-related revenue.

They are also adding a royalty for those third party publishers who make more than $750K per year.

Interestingly, only books and 'static electronic files' like ebooks and PDFs will be compatible with the new OGL, meaning that apps, web pages, and the like will need to stick to the old OGL 1.0a.

There will, of course, be a lot of debate and speculation over what this actually means for third party creators, and how it will affect them. Some publishers like Paizo (for Pathfinder) and others will likely simply continue to use the old OGL. The OGL 1.0a allows WotC to update the license, but allows licensees to continue to use previous versions "to copy, modify and distribute any Open Game Content originally distributed under any version of this License".

OGLs, SRDs, & One D&D

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1. Will One D&D include an SRD/be covered by an OGL?

Yes. First, we’re designing One D&D with fifth edition backwards compatibility, so all existing creator content that is compatible with fifth edition will also be compatible with One D&D. Second, we will update the SRD for One D&D as we complete its development—development that is informed by the results of playtests that we’re conducting with hundreds of thousands of D&D players now.

2. Will the OGL terms change?

Yes. We will release version 1.1 of the OGL in early 2023.

The OGL needs an update to ensure that it keeps doing what it was intended to do—allow the D&D community’s independent creators to build and play and grow the game we all love—without allowing things like third-parties to mint D&D NFTs and large businesses to exploit our intellectual property.

So, what’s changing?

First, we’re making sure that OGL 1.1 is clear about what it covers and what it doesn’t. OGL 1.1 makes clear it only covers material created for use in or as TTRPGs, and those materials are only ever permitted as printed media or static electronic files (like epubs and PDFs). Other types of content, like videos and video games, are only possible through the Wizards of the Coast Fan Content Policy or a custom agreement with us. To clarify: Outside of printed media and static electronic files, the OGL doesn’t cover it.

Will this affect the D&D content and services players use today? It shouldn’t. The top VTT platforms already have custom agreements with Wizards to do what they do. D&D merchandise, like minis and novels, were never intended to be part of the OGL and OGL 1.1 won’t change that. Creators wishing to leverage D&D for those forms of expression will need, as they always have needed, custom agreements between us.

Second, we’re updating the OGL to offer different terms to creators who choose to make free, share-alike content and creators who want to sell their products.

What does this mean for you as a creator? If you’re making share-alike content, very little is going to change from what you’re already used to.

If you’re making commercial content, relatively little is going to change for most creators. For most of you who are selling custom content, here are the new things you’ll need to do:

1. Accept the license terms and let us know what you’re offering for sale
2. Report OGL-related revenue annually (if you make more than $50,000 in a year)
3. Include a Creator Product badge on your work

When we roll out OGL 1.1, we will also provide explanatory videos, FAQs, and a web portal for registration to make navigating these requirements as easy and intuitive as possible. We’ll also have help available to creators to navigate the new process.

For the fewer than 20 creators worldwide who make more than $750,000 in income in a year, we will add a royalty starting in 2024. So, even for the creators making significant money selling D&D supplements and games, no royalties will be due for 2023 and all revenue below $750,000 in future years will be royalty-free.

Bottom line: The OGL is not going away. You will still be able to create new D&D content, publish it anywhere, and game with your friends and followers in all the ways that make this game and community so great. The thousands of creators publishing across Kickstarter, DMsGuild, and more are a critical part of the D&D experience, and we will continue to support and encourage them to do that through One D&D and beyond.

 

[kenmarable]

The DM's Guild IS more visible to consumers, but that wasn't what I was talking about. Both websites are just as easy to visit, shop, and purchase games . . . but the DM's Guild is the place to go for official D&D community content. That's not important to everybody, but it is important to a lot of folks.

But what I was talking about was visibility from the perspective of a publisher. You'll get more eyeballs on your product, and ideally more purchases, if it is on the DM's Guild rather than DriveThruRPG. Can I back that up with stats? No, but it is a common belief, and makes sense.

That's part of the reason why you find a lot of product on the DM's Guild that doesn't use WotC IP, and could have just as easily have been published under the OGL on DriveThruRPG.

I don’t have stats to back that up either but plenty of publishers who would be in the position to have hard numbers have said in the past that unless you have a Kickstarter or Patreon to pre-fund it, 5e content goes to DriveThruRPG to die. If I recall, many have said the difference in sales for 5e content between the two sites is orders of magnitude (plural orderS) and DMs Guild numbers aren’t super high to begin with. So for your average 3pp, the increase in visibility and sales at DMs Guild more than make up for the higher cut out of your revenue even when not using WotC IP (again, aside from Kickstarters or Patreon which are often more profitable than DMs Guild but involve a lot more work and rely heavily on other skills as well).

 

[dbolack]

Ah. So there's still room for... umm... "surprises."

Such as who pays for an audit...

 

[Warpiglet-7]

This bit is interesting too:

First, we’re making sure that OGL 1.1 is clear about what it covers and what it doesn’t. OGL 1.1 makes clear it only covers material created for use in or as TTRPGs, and those materials are only ever permitted as printed media or static electronic files (like epubs and PDFs). Other types of content, like videos and video games, are only possible through the Wizards of the Coast Fan Content Policy or a custom agreement with us. To clarify: Outside of printed media and static electronic files, the OGL doesn’t cover it.

This would seem to indicate that things likes character creation utilities and discord bots and the like are all out of bounds. It is anyone's guess how vehemently WotC will pursue these things, though.

This is what I predicted was coming. They are going digital and monetizing—-and are not wanting to share as much of that pie.

Interesting.

 

[darjr]

I don’t have stats to back that up either but plenty of publishers who would be in the position to have hard numbers have said in the past that unless you have a Kickstarter or Patreon to pre-fund it, 5e content goes to DriveThruRPG to die. If I recall, many have said the difference in sales for 5e content between the two sites is orders of magnitude (plural orderS) and DMs Guild numbers aren’t super high to begin with. So for your average 3pp, the increase in visibility and sales at DMs Guild more than make up for the higher cut out of your revenue even when not using WotC IP (again, aside from Kickstarters or Patreon which are often more profitable than DMs Guild but involve a lot more work and rely heavily on other skills as well).

I agree.

The strange thing is though, currently, if you get big enough with a big enough name for being on the DMSGuild, switching to DriveThru can be a boon, and freeing. The primary example is M.T. Black.

See his plans here.

A Publishing Experiment — M.T. Black Games

A change of publishing direction

www.mtblackgames.com

Anyway, the verdict is in. After a week on sale, the book has exceeded my expectations. It has sold about 950 copies at the time of writing, so I should be picking up a Platinum Best Seller badge in a few days. I'm thrilled and grateful to everyone who has bought a copy. It helped that the low production costs helped me give this an attractive price point. I also want to acknowledge the great assistance I got from good press coverage.

What's next? I plan to write more Fifth Edition content on DTRPG. While it would make sense to follow up with some player options, the muse insists I deliver a particular adventure that's been on my heart, and so it must be. I don't imagine I will easily replicate the success I've had with The Book of Wondrous Magic, but it's an encouraging start to this new direction.

 

[Whizbang Dustyboots]

I go to DTRPG frequently. I rarely go to DMs Guild. The only time I've found DMs Guild the better shop is when I am running an official WotC adventure and want to some well-designed aids, improved VTT maps, etc. But I've only run one official WotC adventure since 2014. So other than a few things I bought for helping run Curse of Strahd, I've only gone to DMs Guild to by some Adventurer's League adventures for some quick one-shots with my kids and to get legal PDFs of some old 1e adventures and the original Grey Hawk. But I've bought a LOT of stuff on DTRPG. Also, a number of Kickstarters I've backed use DTRPG for fulfillment.

Yeah, other than stuff to specifically flesh out Strixhaven, Witchlight or the Radiant Citadel, generally speaking, I find DTRPG to be a much better place to go, which often much more creative approaches to subjects and a lot of extremely high quality work.

That said, things like @Nixlord's mighty Monster Manual Expanded books need to be DMs Guild, given how many product identity critters he publishes variants of. But if he ever does a book of completely original monsters (which sounds like it might be in the cards), I think there's an excellent chance it'd be on DTRPG instead.

 

[kenmarable]

I agree.

The strange thing is though, currently, if you get big enough with a big enough name for being on the DMSGuild, switching to DriveThru can be a boon, and freeing. The primary example is M.T. Black.

See his plans here.

A Publishing Experiment — M.T. Black Games

A change of publishing direction

www.mtblackgames.com

Anyway, the verdict is in. After a week on sale, the book has exceeded my expectations. It has sold about 950 copies at the time of writing, so I should be picking up a Platinum Best Seller badge in a few days. I'm thrilled and grateful to everyone who has bought a copy. It helped that the low production costs helped me give this an attractive price point. I also want to acknowledge the great assistance I got from good press coverage.

What's next? I plan to write more Fifth Edition content on DTRPG. While it would make sense to follow up with some player options, the muse insists I deliver a particular adventure that's been on my heart, and so it must be. I don't imagine I will easily replicate the success I've had with The Book of Wondrous Magic, but it's an encouraging start to this new direction.

Oh, exactly! DMs Guild can help with discoverability if you don't have some other solid marketing plan or existing recognition with fans. But if you can build a big enough following there's plenty more you can do elsewhere - especially for someone like MT Black who managed to ride the early wave of DMsGuild well. Now people look for his products rather than relying on stumbling across them on the storefront. But for those who don't have that recognition and are relying on the storefront to be their primary marketing, DMs Guild is a much better bet to start with.

 

[dbolack]

We haven’t heard about the carrot yet.

I have to assume that access to some resources ( trademarks, platforms, etc. ) would require the material is under the new license rather than the old - and that's the carrot.

 

[dbolack]

So they announced the stick first? Weird, as I thought they were trying to assuage concerns.

Whose concerns? Shareholders or licensee partners

 

[dbolack]

I'm sorry but a company allowing other game devolopers to play in their their toys in their world, and just asking for a cut of the profits and that you only publish your work in their online store isn't some sinister, evil plot. Sure taking a 50% cut may seem like a lot, but DriveThru RPG will take a 30-35% cut as well, if you sell books through them instead.

This is not remotely equivalent. DriveThru is a distribution layer and its fees are analogous to distribution cuts given to Chessex/Alliance/Wizards (whoever is lying about a publisher being out of business so they don't have to restock these days ) - not a royalty.

 

[Dausuul]

I remember the Kenzer people saying that being able to label their 3e Kalamar stuff as official D&D was worth far more to them than what they could do under the OGL and they were happy with that as part of their settlement with WotC for WotC's infringement of their IP in the Dragon archive CD.

WotC has a few options for offering up different incentives. Until they announce something it will be a lot of speculation.

Until WotC announces more all they have announced is a new license with downsides that can be avoided by using the old one.

David Kenzer's day job is IP law. He knows how to navigate the pitfalls of publishing D&D material outside the OGL -- in fact, he appears to have started before the OGL, when TSR was running the show. Most RPG writers lack that expertise.

It occurs to me that wrapped up in a lot of the "analysis" of this is an undercurrent of desire to see WotC fail and collapse. There's a certain expectation of poetic justice for the Goliath to fall and D&D to be "freed."

I absolutely do not want WotC to collapse. I want them to move forward under the same OGL which they used for their most successful editions of D&D. I want 1D&D to thrive and support a thriving 3PP community as well.

I won't go so far as to say the OGL was responsible for the success of 3E and 5E, but at the very least those editions proved the OGL need not stand in the way of success.