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

We love the interest and passion the community has for D&D. We love D&D, too. So, when we see the D&D community concerned by rumors and misu...

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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.

 

[Whizbang Dustyboots]

Fair. But keep in mind that Hasbro has been public since 1968 and has owned D&D since 1999. That's respectively 54 and 23 years of history. If serving the wants and needs of shareholders was such a death knell to the products, I'm sure we would all have abandoned D&D long ago.

They're just waiting until everyone lets their collective guard down!

 

[Remathilis]

Football. All you need is one ball.

My American brain wanted to point out the cost of all the pads and gear, until I realized you're British and talking about soccer.

 

[Hussar]

Ok let me revise my statement so that it is more accurate.

There are very few hobbies where five or six people can play together for hundreds of hours per year for the money.

The existence of cheaper hobbies, particularly ones you don’t typically play with four or five other people every time you play doesn’t really counter my point.

 

[Clint_L]

Complaining about the cost of a hobby is a time-honored tradition (I just spent $250 on foot pegs for my motorcycle), but complaining about a company that literally gives you a basic, playable version of their game for free seems a bit whack. Hasbro can pursue all the monetization strategies they want (that's the business folks' job, after all), but none of them will produce unless they provide something people are willing to spend money on.

So this usually amounts to complaining about what fellow hobbyists are willing to spend money on. I get this too: For example, MMO players seem very interested in spending money to avoid playing the game, and I feel this negatively impacts my experience.

And here's the thing: I could see this becoming an issue in D&D, too. If Hasbro adds a bunch of expensive sizzle to the experience, and most players want to spend money on the sizzle, it might become difficult to find players for a free or low-budget game. I'm already guilty of this when I go look for a game on Roll20: I want to play in a game with dynamic lighting and compendium support, so I limit my searches to games where the DM has ponied up for that. The free or low-budget DM probably has more players than they can handle, so they won't miss me. But if Hasbro makes it so that players have to pay up to play in my game with all the features I want to use...yeah, I'm probably going to expect my players to pay up. If most DMs think like I do, then yeah, it could absolutely become a lot more difficult to play on the cheap.

Hasbro still has to bring the goods, though. No one's going to spend money on sizzle that sucks (I hope, probably naively).

Building on this, thus far Hasbro/WotC have been quite interested in keeping the game super affordable to play and thus expanding the player base. They have not been great at getting my D&D money, though. As a miniatures and terrain enthusiast, I spend a fortune on D&D and a tiny fraction of that (less than 5%, mostly through DnDBeyond) goes directly to Hasbro. Most of it goes to Dwarven Forge, Wizkids, Steamforged, Archon, and others. Looking at your example, a chunk of your D&D money is going to Roll20.

So I get why they are putting out a VTT to try to bring more of that money in house, just as they bought DnDBeyond to do the same.

 

[darjr]

My American brain wanted to point out the cost of all the pads and gear, until I realized you're British and talking about soccer.

I stand by my criticism about the beer.

Besides enough beer and hi dint need the pads and helmet etc. dint need the football either really.

 

[GDGD]

My American brain wanted to point out the cost of all the pads and gear, until I realized you're British and talking about soccer.

Don't forget about the cost of acting lessons. You need to learn how to really sell those dives if you want to win soccer games.

 

[Minigiant]

I wonder if big 3PPs will use the OGL 1.1 to get one of their classes on DNDB and get a break on their royalties.

I could only imagine the money you'd get putting your version of Warlord or Psion on DNDB.

 

[Zardnaar]

Ok let me revise my statement so that it is more accurate.

There are very few hobbies where five or six people can play together for hundreds of hours per year for the money.

The existence of cheaper hobbies, particularly ones you don’t typically play with four or five other people every time you play doesn’t really counter my point.

Once again Paradox games only the host needs the dlc. If I host for my friends they get access to all my dlc. Which I often don't pay for.

You can also pay a subscription fee which gives you the game, all dlc and as many players as you want.

They've also given away the base games for free so for a lot less than D&D beyond per month 1 person can essentially play with 12-30 players or whatever your PC and net can handle.

Paradox Interactive runs rings around WotC in bang for buck.

Ok just check you need the base game it's $5 a month per game for the dlcs. Which you often get for free or 75% off sales on steam are pretty much every other month.

Grand strategy games are great time sinks as well.

 

[Whizbang Dustyboots]

I wonder if big 3PPs will use the OGL 1.1 to get one of their classes on DNDB and get a break on their royalties.

I could only imagine the money you'd get putting your version of Warlord or Psion on DNDB.

They need that kind of carrot to get people to sign on. But yes, creating high-quality classes like that with real demand would be a good incentive.

 

[Hussar]

Once again Paradox games only the host needs the dlc. If I host for my friends they get access to all my dlc. Which I often don't pay for.

You can also pay a subscription fee which gives you the game, all dlc and as many players as you want.

They've also given away the base games for free so for a lot less than D&D beyond per month 1 person can essentially play with 12-30 players or whatever your PC and net can handle.

Paradox Interactive runs rings around WotC in bang for buck.

Ok just check you need the base game it's $5 a month per game for the dlcs. Which you often get for free or 75% off sales on steam are pretty much every other month.

Grand strategy games are great time sinks as well.