We got an official leak of One D&D OGL 1.1! Watch Our Discussion And Reactions!

Oh yeah. There's a Turkish company currently making 5E content that got two succesful kickstarters funded (Dream Realm Storytellers). Their revenue from the two kickstarters got around 475k in dollars. If they were to publish under OGL v1.1 and make two more kickstarters to the same amount, they'd need to pay Wizards royalties to the tune of 40000 dollars, which makes around 748000 Turkish liras (which is 88 times the Turkish minimum wage).

Mind you, this is a very small indie Turkish company that just happened to find a niche that gave them reach in the international market. I hardly doubt their current financials would allow them to afford paying the kind of royalties WotC is asking.

They're effectively killing any profitable third-party content creation unless you're Critical Role.
If the royalty is Gross, and not net, that's going to cut a lot of people out. Let's look at a recent KS I did: Twilight Fables. The KS was $55,000. KS took $5K of that. If I had to pay an additional $13,700 to WoTC, I would have been in the red (by that amount, since I pretty much broke even at $55K).

An additional 25% of GROSS profits is going to be a dealbreaker for a lot of folks.
 

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Actually, no. According to the Gizmodo report (emphasis mine):
I factored that in my calculation. The company currently made 475k from two Kickstarters. My calculations were based on the hypothetical that they made two more kickstarters that netted the same returns, putting them at 950k. Since the royalties start from the first cent after the 750k, they'd have ~200k USD of earnings that are subject to WotC royalty demands. A fifth of that (which is the more generous estimate compared to the 25%) nets us 40k USD of royalties owed to WotC, which gets me to the 88 Turkish minimum wages worth of royalties I arrived at.

Basically, if anyone in my country becomes succesful enough making OGL v1.1 content, they'll take on an extra burden as if they suddenly hired 88 minimum wage employees on top of everything they had.
 

If the royalty is Gross, and not net, that's going to cut a lot of people out. Let's look at a recent KS I did: Twilight Fables. The KS was $55,000. KS took $5K of that. If I had to pay an additional $13,700 to WoTC, I would have been in the red (by that amount, since I pretty much broke even at $55K).

An additional 25% of GROSS profits is going to be a dealbreaker for a lot of folks.
That seems to be the case, as the Gizmodo article indicates:

But the new OGL states that the Commercial Agreement “covers all commercial uses, whether they’re profitable or not.” So if you go into the red on a Kickstarter that earned $800K in backing money, you will still owe Wizards of the Coast, regardless of the fact that you did not profit from your venture.

Though as I pointed out in my last post, it also asserts that you'd only be paying that money on the amount that was over $750,000.
 

Is no one in the WotC offices saying "I don't think this is a good idea boss"?
D&D's entire senior leadership team has been replaced in the past six months with people who have no relevant experience with, or connection to, D&D's history and place within the TRPG industry. Anyone who might raise a concern is either invested in the success of this new approach or focused on having their name on a new edition of the game.
 

If the royalty is Gross, and not net, that's going to cut a lot of people out. Let's look at a recent KS I did: Twilight Fables. The KS was $55,000. KS took $5K of that. If I had to pay an additional $13,700 to WoTC, I would have been in the red (by that amount, since I pretty much broke even at $55K).

An additional 25% of GROSS profits is going to be a dealbreaker for a lot of folks.
That's a fair point. We need to see the actual text to know, but Gizmodo's article suggests that it's based off the yearly revenue out of all content made with OGL. So it's not even profits, it's revenue. Even if you're in the red, if you got 800k in revenue from your Kickstarter, you owe royalties out of the last 50k.
 

No one should like a clause that could conceivably get the Curvy Cryptid Monster Manual pulled.

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Not a product I would buy, but I would fight for its right to exist.
 



Is no one in the WotC offices saying "I don't think this is a good idea boss"?

Nope.

I wrote about this worry a while ago-

Basically, D&D's success is both a blessing and a curse. Now that it is a revenue center ... it's a revenue center. It's on the radar at Hasbro. They expect it to make money.
 


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