The OGL -- Just What's Going On?

D&D fandom is in uproar again about purported upcoming changes to the Open Gaming License, and rumours are flooding social media regarding WotC's intentions to 'de-authorize' the existing Open Gaming License in favour of a new one.

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What's the OGL?
The Open Gaming License is a share-a-like license created by D&D owner WotC about 20 years ago so that third parties could create material compatible with the then-3E D&D game. This allowed smaller publishers to ensure the game was supported with products which WotC could not make themselves, driving sales of the core rulebooks. D&D 5E's rules are also released under that very same license, which is why you see hundreds of 5E-compatible products on Kickstarter from massive projects like the 5E-powered The One Ring, down to small adventures and supplements. It has been widely believed for two decades that this license is irrevocable (and, indeed, WotC itself believed that -- see below), but it appears that WotC is now attempting to revoke it.

A Quick Recap
A few weeks ago, WotC made a short statement regarding the OGL, followed later by a more in-depth announcement covering revised terms, royalties, and annual revenue reporting.


At the same time, at the end of December, a number of hastily arranged meetings with 'key' third party creators under a strict NDA agreement were set up with WotC's licensing department in order to share the company's plans regarding licensing of D&D going forward (disclaimer -- while WotC also reached out to me, we were unable to schedule a meeting over the busy Christmas period, so I am not party to that information).

A New Rumour Emerges
This all came to a head yesterday when the Roll For Combat YouTube channel released what they said was a leak of the upcoming OGL from multiple trusted but anonymous sources within WotC.


This leak claims the following. Note -- it is impossible to verify these claims at this time.
  • There will be TWO OGL's -- an OCG: Commercial and an OGL: Non-Commercial.
  • The original OGL will become unauthorized. This hinges on the wording of s9 of the current OGL:
9. Updating the License: Wizards or its designated Agents may publish updated versions of this License. You may use any authorized version of this License to copy, modify and distribute any Open Game Content originally distributed under any version of this License.

While the license does indeed grand a 'perpetual' right to use the Open Gaming Content referenced, it appears that WotC currently believes that it can render a version of the license unauthorized. The license itself makes no reference to authorization or the lack thereof, nor does it define any methods of authorization or deauthorization, other than in that line. So this entire thing hinges on that one word, 'authorized' in the original OGL.

RollForCombat posted the following summary -- it is unclear whether this is their own paraphrasing, or that of their anonymous source, or indeed the actual document (although tonally it doesn't sound like it):


"This agreement is, along with the OGL: Non-Commercial, an update to the previously available OGL 1.0(a), which is no longer an authorized license agreement. We can modify or terminate this agreement for any reason whatsoever, provided We give thirty (30) days’ notice. We will provide notice of any such changes by posting the revisions on Our website, and by making public announcements through Our social media channels."

"You own the new and original content You create. You agree to give Us a nonexclusive, perpetual, irrevocable, worldwide, sub-licensable, royalty-free license to use that content for any purpose."

"You waive any right to sue over Our decision on these issues. We’re aware that, if We somehow stretch Our decision of what is or is not objectionable under these clauses too far, We will receive community pushback and bad PR, and We’re more than open to being convinced that We made a wrong decision. But nobody gets to use the threat of a lawsuit as part of an attempt to convince Us."

The ability for WotC to use your Open Gaming Content is not new; the company could do that under the old OGL also; it has rarely exercised that right, though it did reuse a couple of third party monsters in a 3E rulebook.

iO9 Gets A Copy
However, Linda Codega over at Gizmodo/iO9 got hold of a copy of the current draft of the OGL 1.1.
  • It's long. It's ten times the length of the current OGL, at 9,000 words.
  • No bigots. It prohibits NFTs and bigoted content.
  • Print/PDF only. It also prohibits apps and video games. And pantomimes, apparently. The wording says "including but not limited to things like videos, virtual tabletops or VTT campaigns, computer games, novels, apps, graphics novels, music, songs, dances, and pantomimes."
  • Deauthorizes the previous OGL. The license states that the OGL 1.0a is "no longer an authorized license agreement".
  • It’s soon! Pressingly, the draft also indicates that publishers who wish to sell SRD-based content on or after January 13th (which is just 8 days away!) have only one option: agree to the OGL: Commercial. That gives companies very little time to evaluate the license or make any necessary changes.
  • Clear OGL declarations. The new license contains other restrictions which effectively prohibit companies from identifying their OGC via a separate System Reference Document (which is what games like Pathfinder do); instead the reader must be alerted to Open Gaming Content within the product itself.
  • Royalties. As previously noted, creators who make over $750K will need to pay royalties to WotC. WotC does indicate that it might reach out to succesful creators for a more 'custom (and mutially beneficial) licensing arrangement). Creators are divided into three tiers - under $50K, $50K-$750K, and $750K+. The royalty is 20% or 25% of 'qualifying revenue', which is revenue in excess of $750K. The term used is revenue, not profit.
  • They want you to use Kickstarter. Kickstarter -- their 'preferred' platform -- attracts the lower 20% royalty, and non-Kickstarter crowdfuders attract 25%. It's interesting that WotC even has a preferred crowdfunding platform, let alone that they are trying to influence creators to use it over its competitors like Backerkit, IndieGoGo, Gamefound, and the like.
  • New logo. An identifying badge will be required on products which use the new OGL, and creators will need to send WotC a copy of their product.
The document itself comments that “the Open Game License was always intended to allow the community to help grow D&D and expand it creatively. It wasn’t intended to subsidize major competitors, especially now that PDF is by far the most common form of distribution.” That sounds like it is talking about companies such as Paizo.

Community Reaction
Social media has exploded, with a lot of very negative pushback regarding this news.

Many people have weighed in with their interpretations of s9 (above), both lawyers and non-lawyers. There seems to be little agreement in that area right now. If the above rumous is true, then WotC's current leadership clearly believes that previous iterations of the OGL can be 'de-authorized'. It's interesting to note that previous WotC administrations believed otherwise, and said as much in their own official OGL FAQ:


7. Can't Wizards of the Coast change the License in a way that I wouldn't like?

Yes, it could. However, the License already defines what will happen to content that has been previously distributed using an earlier version, in Section 9. As a result, even if Wizards made a change you disagreed with, you could continue to use an earlier, acceptable version at your option. In other words, there's no reason for Wizards to ever make a change that the community of people using the Open Gaming License would object to, because the community would just ignore the change anyway.

OGL architect Ryan Dancey also appears to have felt otherwise. In an article right here on EN World he said:

I also had the goal that the release of the SRD would ensure that D&D in a format that I felt was true to its legacy could never be removed from the market by capricious decisions by its owners.

Of course, many game systems are released using that license: Pathfinder, Fate, Open d6, WOIN, and many, many more -- many of them have nothing at all to do with D&D and simply use the license as a useful tool for enabling third-party content creators; while Pathfinder is, of course, the industry's largest OGL game and published by Paizo, the industry's second largest TTRPG comapmny after WotC itself. If the original OGL were somehow to become invalid, all these games would be affected.


There are other bits to the current rumour -- a 30 day notice period during which WotC can change the license any way they wish, and a waiver over the right to sue the company.

It's hard to get a clear picture of what's going on right now. I haven't seen the new OGL, and other than a handul of 'key' creators, it seems like very few have. WotC did indicate that it would be unveiled very soon.

Is it an OGL?
While it may be called "Open Gaming License v1.1", if the above is true, this isn't really an update to the OGL, it's an entirely new license. Ryan Dancey, architect of the original OGL. and who runs the Open Gaming Foundation, defines open gaming licenses as --
1. Game Rules and materials that use those rules that can be freely copied, modified and distributed.​
2. A system for ensuring that material contributed to the Open Gaming community will remain Open and cannot be made Closed once contributed.​
By these definitions, it appears that the new OGL is not actually an open gaming license, and has more in common with the Game System License WotC used for D&D 4th Edition.

So, What Now?
Now, we wait and see. Many eyes will be on the bigger players -- Paizo, Kobold Press, Green Ronin, etc. -- to see what action they take. As yet, none of these have commented publicly except for Green Ronin's Chris Pramas who told Gizmodo that they had not yet seen the new license, but they do not believe there is "any benefit to switching to the new one as described.” As for Paizo, Gizmodo says "Paizo Inc., publisher of the Pathfinder RPG, one of D&D’s largest competitors, declined to comment on the changes for this article, stating that the rules update was a complicated and ongoing situation."

Will these companies go along with it? Will they ignore it? Will they challenge it? We'll have to wait and see!

7 days is not enough time for even a small publisher to overhaul its entire product line to comply with new rules, let along a large one like Paizo. I have to assume there is an allowed time period to do this, otherwise it's practically impossible to do. It does seem that -- if proven enforceable -- the de-athorization of the existing OGL would drive many companies out of business, especially those which produce or lean heavily on electronic apps and the like.

It also remains to be seen how WotC goes about the task of persuading creators to use its new license -- will it tempt them with a carrot (such as access to the D&D Beyond platform), or try to force them with a stick (such as threat of legal action)? And how will the TTRPG community react, because this goes far beyond just D&D.

It sounds like we'll hear something more solid imminently.
 

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Wall of text warning:

I still think what we need is a ruleset that everyone can get behind. Everybody knee-jerking their own SRDs won't help. We already have many of those. We need an Omni-srd with support from the large majority of companies in the OGL-sphere.

To achieve a game like this, it would have to be based on community feedback. The final product would be free of any single designer's personal vision and instead be an amalgam of the most supported mechanics in the community. This would result (at least that is the hope) in a game that is perfect for none, but acceptable to all.

Use existing games as a starting point, and send out surveys where people vote on different mechanical elements, like «four or six attributes?», «advantage/disadvantage or modifiers?» and so on. The designers job would then be to piece together a working game from these elements.

Also, everyone participating would have to pull together to increase the visibility of the product. It would have to be a complete game, not just a barebones chassis. It would need a cool name, logo, preferably artwork and so on, at least as much of this as possible. In short, a sellable, marketable product.

Why do this? Well, the main idea is defracturing the non-dnd market, which would have several positive effects. There is a lot of talk about how dnd drives the entire rpg market. A strong dnd is good for everyone and so on. The new game would serve a similar purpose for the secondary market as dnd serves for the total market, being a figurehead for non-dnd products and a driving force.

It would serve as the clear an obvious alternative for anyone disgruntled with dnd for whatever reason. It’s main selling point wouldn’t be the system in itself, but better support and a larger player base. I think the absence of a clear alternative is a hurdle for many people who want to try something new. You either get lost in the jungle of alternatives or perhaps never find the game that is exactly right, and so end up staying with the default.

The theory here is that with the omnigame handling recruitment, business would trickle down to all of the existing 3pp games already out there as well. Having burst the dnd-bubble, trying something else feel less daunting than before. Perhaps in time, the IP would be strong enough to also recruit infant players as well, who knows.

The omnigame through its OGL would provide a common non-dnd-derived terminolgy that could be used by all other games to avoid legal troubles with WotC. This would solve part of the problem with accessibility of games for new players. If we can’t use the word saving throw for example, the second best thing is that everybody uses the same alternative.

Of course, the omnigame would also provide a market for adventures, mechanical expansions, setting books and so on that would be a lot smaller than the one for dnd-compatible products, but still larger than the one for each of the individual smaller games.

The more I think about this, the more I am convinced that it is actually a good idea.
 

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The stream by Indestructoboy was abruptly ended when someone sent him a copy of the OGL 1.1.

He switched to a new stream to discuss the OGL 1.1. I havent seen it yet, will watch it now, but here is the link.

 


Plus - 5e will be 10 years old by 2024. That’s quite a long time for a DnD edition. They’ve already released all of the more popular “must buy” books. They’ve even on to some of the niche settings like Spelljammer. They need a new edition to get people buying a new set of PHBs and MMs and player companions etc.

So then perhaps they decided to do this transparent cash grab to draw attention away from the new edition being a transparent cash grab?
 

One of the commentators in Indestructoboys YouTube points out:

The point of the numbers "$50,000" and "$75,000" in the Anti-OGL is to DISCOURAGE indy creators from ever reaching that level of success.

Relatedly.

The point of the 20% to 25% royalty is that this would be a healthy profit margin for a business to be sustainable − thus giving this profit to Hasbro-WotC instead will kill most emerging indy businesses.

The reason for spying on those with $50,000 is to precisely calculate the profit margin, so as to know precisely what to charge in royalties to kill any business that gets too large.
 
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One of the commentators in Indestructoboys YouTube points out:

The point of the numbers "$50,000" and "$75,000" in the Anti-OGL is to DISCOURAGE indy creators from ever reaching that level of success.

Relatedly.

The point of the 20% to 25% royalty is that this would be a healthy profit margin for a business to be sustainable − thus giving this profit to Hasbro-WotC instead will kill most emerging indy businesses.

The reason for spying on those with $50,000 is to precisely calculate the profit margin, so as to know precisely what to charge in royalties to kill any business that gets too large.

IMO, it is not necessarily to kill a business that gets to large, but to rent-seek off of them so that WotC's competitor's growth is extremely limited by the rent they're forced to pay to WotC past that threshold. It's not supposed to kill competition, it's supposed to transfer competition profits to WotC thereby keeping all competition at an acceptable level while ensuring any newly-discovered revenue generators are sending their pound of flesh.

Consider that the marginal rate on 1.5 million would be 12.5%. That amount could probably be afforded, but that marginal rate rapidly increases towards the full 25% as revenue increases.

The fact that the commentator said it wasn't rent-seeking behavior annoyed me. It is precisely rent-seeking behavior, and specifically rent-seeking behavior designed to prevent competition above a certain size. Particularly when that rate and threshold of where it kicks in can be unilaterally changed at a later date if a company shows that it still capable of growing while paying their rent to WotC.

joe b.
 

So then perhaps they decided to do this transparent cash grab to draw attention away from the new edition being a transparent cash grab?
That’s unlikely to be much of a problem. While a handful of people will complain that a new edition is a cash grab, they’re usually a small minority. Even the negative reaction to 4th wasn’t because it was seen as a cash grab, it was because it “wasn’t DnD”.

I think they decided to do this because they don’t like the OGL. Especially given they want to better “monetise” DnD. They plan to release a lot of new material for DnD and in new formats (such as VTT) that they weren’t too bothered about when the OGL first came out. They think a lot more money can be made from the DnD brand, and are worried that the OGL as-is will allow others to eat into their market.
 

IMO, it is not necessarily to kill a business that gets to large, but to rent-seek off of them so that WotC's competitor's growth is extremely limited by the rent they're forced to pay to WotC past that threshold. It's not supposed to kill competition, it's supposed to transfer competition profits to WotC thereby keeping all competition at an acceptable level while ensuring any newly-discovered revenue generators are sending their pound of flesh.

Consider that the marginal rate on 1.5 million would be 12.5%. That amount could probably be afforded, but that marginal rate rapidly increases towards the full 25% as revenue increases.
No.

Hasbro-WotC makes so much money, more that all of the other "competitors" combined, they actually dont care about "rent seeking" for the little share of what others are earning.

The motive is to destroy any "competitor" that becomes significant.


... designed to prevent competition above a certain size.
Yes.
 

No.

Hasbro-WotC makes so much money, more that all of the other "competitors" combined, they actually dont care about "rent seeking" for the little share of what others are earning.

The motive is to destroy any "competitor" that becomes significant.

I disagree. The motive or goal for rent-seeking behavior does not negate that it is rent-seeking behavior any more than the reason for driving a car negates that one is driving a car. For instance, one could easily postulate that the rent-seeking is also done to keep competition at a level low enough so that WotC has a chance to purchase any competition that has a very good idea before that very good idea becomes a lot more expensive to purchase. In this way they are out-sourcing the idea-development in a way that allows them to harvest the best that blooms while knowing that the rent-seeking will keep those blooms from ever leaving the garden and costing $142 million dollars to purchase like D&D Beyond just cost them. There are many reasons one can put forth as for why the rent seeking exists and all of those reasons are just speculation.

What is not speculation is that the mechanism for all of those speculative reasons is rent-seeking behavior.

joe b.
 

I disagree. The motive or goal for rent-seeking behavior does not negate that it is rent-seeking behavior any more than the reason for driving a car negates that one is driving a car. For instance, one could easily postulate that the rent-seeking is also done to keep competition at a level low enough so that WotC has a chance to purchase any competition that has a very good idea before that very good idea becomes a lot more expensive to purchase. In this way they are out-sourcing the idea-development in a way that allows them to harvest the best that blooms while knowing that the rent-seeking will keep those blooms from ever leaving the garden and costing $142 million dollars to purchase like D&D Beyond just cost them. There are many reasons one can put forth as for why the rent seeking exists and all of those reasons are just speculation.

What is not speculation is that the mechanism for all of those speculative reasons is rent-seeking behavior.

joe b.
We can agree the "means" is rent-seeking. However the "motive" is Hasbro-WotC seeks to destroy any gamer who becomes successful.

It is like: is the purpose of driving the car to get somewhere, or is it to run over a puppy? In this case, Hasbro-WotC is driving the car for the purpose of running over the puppy.
 

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