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.

 

[Micah Sweet]

Yes. But you don't have to. That is the point. Even if you need to buy new core books. It is still not expensive. And you regularly see people freak out, because "Greedy WotC wants to sell you books you already own".
Hey, you can still play Civilization 2. Still works... but people who liked that game will possibly be happy that you can now buy Civilization 6, which is modernized and streamlined.
I for my part am happy, that I can soon buy Diablo 4. Diablo 3 is now 10 years old.
Why can't RPG people be happy about an upgrade?
Why should everyone stick to an edition that is 10 years old, just because you happen to have bought so many books.

(Minis are still perfectly usable no matter which edition.)

Why do people hate the Idea, that today's young gamers can buy a modern edition.
There are new gamers who will turn 14 in 2 years and buy their first book.
They were 4, when 5e came out.

Do you want to tell them, that they should buy the PHB, but not the DMG, and for the ranger class it is better to also have tasha's guide.
Or do you want to tell them to just buy the new and improved core books that are based on the experience of 10 years?

Edit:
Or even better: just subscribe for 3€/month to get the core books.

Well, gamers in general can do what they want, but since I'm not planning buy or play the new edition, if my own players buy those books there won't be much value in them for a game I run.

For the record, I prefer Diablo 2 over 3 regardless. Don't know much about 4.

 

[Malmuria]

Yes. But you don't have to. That is the point. Even if you need to buy new core books. It is still not expensive. And you regularly see people freak out, because "Greedy WotC wants to sell you books you already own".

At the same time, it's not really to wotc's credit that the game can be played freely. It's always been up to TSR/WOTC to figure out how to get "recurrent spending" for a game that is mostly based in the imagination of players. That is, the fact that the game is cheap/free is a problem to be solved for the companies in charge, especially now that wotc is under pressure to keeping growing revenue. It's good to be clear about that dynamic: wotc is trying to sell you stuff that you might want but don't need to play the game.

I would also make a distinction between the game 1) as a hobby and 2) as consumer entertainment. As a hobby, what makes the game go is the activity and energy of the players. Certainly you need a rulebook, but beyond that participating in the hobby is not about what you buy but about what you do. The hobby, in this sense, is more what happens at the table and less what is in a given book. If knitting is your hobby, you need yarn and supplies, but the sweater you make is, for better or worse, your own creation and not that of the yarn company.

As consumer entertainment, dnd is also cheap compared to, say, going out to the movies a lot. But the thing about seeing a movie is that it is a passive experience. You contribute nothing to making the movie happen other than the price of the ticket.

I think the 'why buy books you already own' sentiment comes from people who see dnd as more of a hobby than as entertainment. If my hobby is basketball, and I already have a hoop, I don't need to go out and get a new one. The hobby is not me getting a new hoop or new basketballs, the hobby is me going out and playing. By contrast, if your interest is in watching professional basketball, then you must buy tickets or tv subscriptions to be entertained.

 

[overgeeked]

At the same time, it's not really to wotc's credit that the game can be played freely. It's always been up to TSR/WOTC to figure out how to get "recurrent spending" for a game that is mostly based in the imagination of players. That is, the fact that the game is cheap/free is a problem to be solved for the companies in charge, especially now that wotc is under pressure to keeping growing revenue. It's good to be clear about that dynamic: wotc is trying to sell you stuff that you might want but don't need to play the game.

And we’re repeatedly ignoring the fact that old books don’t disappear when the new ones come out. There’s nothing stopping people from continuing to play their old games except the fear of missing the latest new thing. WotC literally banks on people’s fear of missing the latest new thing.

I would also make a distinction between the game 1) as a hobby and 2) as consumer entertainment. As a hobby, what makes the game go is the activity and energy of the players. Certainly you need a rulebook, but beyond that participating in the hobby is not about what you buy but about what you do. The hobby, in this sense, is more what happens at the table and less what is in a given book. If knitting is your hobby, you need yarn and supplies, but the sweater you make is, for better or worse, your own creation and not that of the yarn company.

As consumer entertainment, dnd is also cheap compared to, say, going out to the movies a lot. But the thing about seeing a movie is that it is a passive experience. You contribute nothing to making the movie happen other than the price of the ticket.

I think the 'why buy books you already own' sentiment comes from people who see dnd as more of a hobby than as entertainment. If my hobby is basketball, and I already have a hoop, I don't need to go out and get a new one. The hobby is not me getting a new hoop or new basketballs, the hobby is me going out and playing. By contrast, if your interest is in watching professional basketball, then you must buy tickets or tv subscriptions to be entertained.

There’s nothing about D&D as entertainment that requires the constant purchase of new stuff. You buy a DVD and can watch it as many times as you want. Same with books. Same with RPGs. You can read and re-read the books until they fall apart and then you can rebind them. You can play the game described in the books as many times as you want. Well, as many times as you can find players and time to get together. Even with D&D streams as entertainment, they’re all free on YouTube. No extra purchase required.

 

[Voadam]

At the same time, it's not really to wotc's credit that the game can be played freely. It's always been up to TSR/WOTC to figure out how to get "recurrent spending" for a game that is mostly based in the imagination of players.

For 3.0 and 3.5 it was to their credit. The SRD allowed you to have the core rules free. I used the srd as my go to rules for 3.0 and 3.5 (I had the 3.0 PH in print and read it but for a while in the 3.0 era I was only doing online games and I never reached for my PH during a game or character creation or advancement, it was all srd referencing). I ran 3.0 and 3.5 games using only the SRD. (5e was enough for publishers to put out stuff but not enough 5e SRD material for players to make the PH range of characters).

This was a successful move on WotC's part in the 3e era as to my purchasing patterns. I bought a number of sourcebooks and modules from WotC even though I never bought a DMG in the 3e era. Even though I spent more on OGL books than WotC ones, this was mostly a shift from non-D&D books I had been purchasing in the past so it was useful in keeping me more in the D&D ecosystem and running D&D games and buying the occasional WotC product.

Same for Paizo when WotC shifted to 4e with no free SRD and Paizo Pathfinder started up with a free SRD. I used the free Pathfinder SRD and switched to Pathfinder and started buying Paizo and other OGL pathfinder stuff.

 

[Malmuria]

For 3.0 and 3.5 it was to their credit. The SRD allowed you to have the core rules free. I used the srd as my go to rules for 3.0 and 3.5 (I had the 3.0 PH in print and read it but for a while in the 3.0 era I was only doing online games and I never reached for my PH during a game or character creation or advancement, it was all srd referencing). I ran 3.0 and 3.5 games using only the SRD. (5e was enough for publishers to put out stuff but not enough 5e SRD material for players to make the PH range of characters).

This was a successful move on WotC's part in the 3e era as to my purchasing patterns. I bought a number of sourcebooks and modules from WotC even though I never bought a DMG in the 3e era. Even though I spent more on OGL books than WotC ones, this was mostly a shift from non-D&D books I had been purchasing in the past so it was useful in keeping me more in the D&D ecosystem and running D&D games and buying the occasional WotC product.

Same for Paizo when WotC shifted to 4e with no free SRD and Paizo Pathfinder started up with a free SRD. I used the free Pathfinder SRD and switched to Pathfinder and started buying Paizo and other OGL pathfinder stuff.

In this sense having some version of the core material be free is a good marketing tactic, as it drives engagement and future purchases. Certainly if the free rules are on the same site (dnd beyond) as your product. But again, the problem from wotc's side is "what will drive recurrent spending," not "how can we make sure people can play the game without buying anything."

 

[SkidAce]

And we’re repeatedly ignoring the fact that old books don’t disappear when the new ones come out. There’s nothing stopping people from continuing to play their old games except the fear of missing the latest new thing. WotC literally banks on people’s fear of missing the latest new thing.

Its not just the fear of missing things...its also the fear of being left behind, not being or belonging to a group, or being a part of a culture.

Its bittersweet when things change, if you go forward with the new style you get to stay with the majority and enjoy that aspect, but may miss or be nostalgic about facets of the old.

If the changes are too much for you, you slowly lose relevance and a sense of belonging, and eventually all you have left* is nostalgia.



*obviously this is a broad stroke description, your group may stick with each other and play for years.

 

[UngeheuerLich]

Well, gamers in general can do what they want, but since I'm not planning buy or play the new edition, if my own players buy those books there won't be much value in them for a game I run.

For the record, I prefer Diablo 2 over 3 regardless. Don't know much about 4.

That is not surprising.

 

[UngeheuerLich]

In this sense having some version of the core material be free is a good marketing tactic, as it drives engagement and future purchases. Certainly if the free rules are on the same site (dnd beyond) as your product. But again, the problem from wotc's side is "what will drive recurrent spending," not "how can we make sure people can play the game without buying anything."

Answer is easy: produce products that people want to buy. There is literally nothing else they can do.

 

[Micah Sweet]

That is not surprising.

If it makes you feel any better, I preferred 2 over 1 as well. And 4 might be great; I don't know, because I haven't kept up on it.

 

[JEB]

On the off chance this wasn’t already posted, the Alexandrian is doing a series on the OGL.

Open Gaming License: A Brief History

What the heck is an Open Gaming License?And why should you care?The Open Gaming License, or OGL, is what lets people sell D&D-compatible adventures and supplements without getting Hasbro

thealexandrian.net

Note that while the articles appear to be broadly accurate, they do have a few errors: most notably, they claim that the 5E SRD excludes stuff that wasn't also in the 3E SRDs.