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".


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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.
 

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I don't think we have seen any indication that the new model is going to open up WotC's IP to 3PPs. Like, Kobold isn't going to be suddenly allowed to produce Eberron supplements willy nilly. That stuff is still gated behind other agreements (such as DMsGuild).
What I mean is that it looks like WOTC will allow Kobold Press to assets on D&D Beyond and other pillars if they agree to the OGL 1.1.

Allowing a 3pp to be on DNDB or D&D video games and fully integrated into them would HUGE be a large percent of 3PP.

Let's say Mage Hand Press gets their Warmage class on D&D Beyond, Baldur's Gate 4, and Xanatar's Back At a Again, I would expect them to make a lot more that a royalty fee would be 100% worth it.
 

In some ways WotC is in the position IBM was with the PC. They tried many times to extract license money from the wider industry. While Microsoft actually made the lions share. WotC needs to figure out how to be MS instead of IBM.
I think that is what WOTC might be doing. The whole thing feels like WOTC is basically attempting to run D&D like a video game console company to me. They provide the platform and some basics then let the 3rd parties do the bulk of the content creation on their platform for a fee.
 

What I mean is that it looks like WOTC will allow Kobold Press to assets on D&D Beyond and other pillars if they agree to the OGL 1.1.
I don't think there is anything but speculation that this is the OGL 1.1 carrot, though. There's really nothing pointing toward that other than OGL1.1 reasserting that the OGL doesn't allow software.
 




You are 100% correct, but WotC statement seems to imply that the OGL was never supposed to allow software.
I don’t think what ‘it seems to imply’ matters, to be honest. Everybody will infer what they infer. But their FAQ at the time (which has been posted here a few times) clearly indicates otherwise.

There’s a lot of misinformation about at the moment, and ‘the OGL doesn’t allow software’ has been stated as though it were fact several times. It’s important to point out the misinformation.
 

It’s not reasserting. As I said before there’s nothing in the current OGL prohibiting software.
Meeting the terms of the OGL with software does require building in some specific features. You have to make it possible to access all of the open content in human-readable form, together with the OGL notice, and you have to point out all the open content.

But it absolutely can be done.
 


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