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.

 

[Alzrius]

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.

And after it, since Kingdoms of Kalamar for D&D 4E was also published without a license.

 

[Jimmy Dick]

Good thing I play Pathfinder 2e. I don't give a rat's behind what WotC does to screw up their game because Paizo is not going to be using their new OGL. In fact, I think Paizo might very well market more of its Pathfinder 2e products to the 5e community and cash in.

Plus I have news for everyone who thinks the new edition is going to be fully compatible with 5e. Keep dreaming. The lore will remain the same, but the characters are going to change significantly. The only way it will be considered compatible is if the GMs and players call rebuilding characters to fit the new system to be fully compatible. Even then, they will be different and the game will play differently. That's why Paizo did not go the compatible route with 2e. They knew the new system was not fully compatible and was never designed to be. It's a very different rules system with a lot of similarities to Pathfinder 1e and the concept of D&D through its evolutions, but different enough that it plays differently.

 

[dbolack]

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.

My copy of Kalamar is dated 1994, so this is correct.

 

[Nylanfs]

I'm really curious where this goes. My gut feel is that a lot of this is just posturing. "Here is the 1.1 OGL that specifically says video games, VTTs, and electronic tooling were never supported under the OGL, so we at WoTC reserve the right to sue any competitors to D&D Beyond or the official D&D VTT or the next gen official D&D video games that don't line up for a license and behave."

Those things WERE allowed under the OGL, they couldn't be made using the d20 STL though because of the wording around the dice mechanics and generating results.

And PCGen has a 20+ year history of showing that.

 

[codo]

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.

I'm sorry I might not have been clear. I was just talking about the current DMsguild, not any new royalties under the new OGL. This is a very nuanced topic with lots of technical terms. When we are discussing these complicated topics, I think we should all try to more specific with our terminology, and clarifying our points. It is really easy in these long complicated threads for people to talk past each other.

 

[Sly Gryphon]

Which clause of the OGL do you interpret as prohibiting video games?

The original poster is incorrect; there is nothing that prohibits video games (or NFTs) in OGL 1.0a; which is why the restriction is being added in 1.1 (although this restriction won't be binding, due to the "any" version distribution clause).

In fact converting an OGL text document into a computer program (including a video game) would seem to be explicitly listed "including into other computer languages".

[Aside: Interestingly "potation", which I looked up an apparent means the act of drinking, is also explicitly allowed. So you are allowed to drink OGL material (or perhaps make a cocktail based off it).]

It will be interesting to see what the offer in return for those who chose to use the new OGL 1.1, e.g. perhaps marketing or listing of products for those who report revenue. The versions aren't binding (due to the "any" clause), so they would have to offer something.

(Note that the inability to close an open licence is actually an intended feature of the open source movement)

So that means it is also good that they are doing a new version of the OGL, allowing both backwards and forwards compatibility ("you may use any version for content originally distributed under any version") compared to 4E which used an incompatible and different GSL.

 

[Remathilis]

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."

There is a heavy dose of fan entitlement going around. An assumption that D&D would be better without WotC and in the hands of the fans. What would happen if WotC fails, of course, is a dozen Paizos all would be fighting for some shred of the market using different versions of SRD based games. It would balkanize D&D's fan base once and for all.

 

[Incenjucar]

This makes me wonder all the more of the viability of a DMsGuild conversion guide offering. Build the core parts under 1.0 and, if there's any gap, add a cheap or free conversion guide under 1.1.

 

[Whizbang Dustyboots]

What would happen if WotC fails, of course, is a dozen Paizos all would be fighting for some shred of the market using different versions of SRD based games. It would balkanize D&D's fan base once and for all.

"No good, I've known too many Spaniards fantasy heartbreakers."

 

[dbolack]

There is a heavy dose of fan entitlement going around. An assumption that D&D would be better without WotC and in the hands of the fans. What would happen if WotC fails, of course, is a dozen Paizos all would be fighting for some shred of the market using different versions of SRD based games. It would balkanize D&D's fan base once and for all.

Eh. It's just the current version of folks who would type T$R in every post on the ADD echo...