Lizard said:
Let us say I am the owner of, oh, Evoker games. I produce a book called the "Volume Of Monsters", which is 100% OGC. I decide to move on to 4e.
Another company, decrying the loss of the VoM for 3.5, takes all my OGC and publishes it, without my permission -- which he does not need and which I cannot deny. I have no financial relationship with this other company.
Am I in breach of the GSL?
This is an interesting one.
Let me clarify a few facts in your hypo, then I’ll take a stab at this:
FACTS:
1. You ("You") own Evoker Games (EG or "Company A").
2. EG previously published an OGL product called Volume of Monsters (VOM) which contains Open Game Content (OGC).
3. EG subsequently accepts the GSL via the acceptance card.
4. Company B accepts the GSL via the acceptance card.
5. Company B subsequently creates a Product under the GSL that includes OGC from EG's VOM.
6. Company B does not specifically gain your permission to use said OGC outside of the OGL (which, frankly, you might not have the power to grant anyway)
QUESTION:
What are the rights and liabilities of the respective parties?
Rights/Liabilities of You:
Presuming proper corporate structure and proper attention to corporate formalities, YOU likely cannot be sanctioned. However, should Wizards in their discretion feel you played any part in anything they feel is improper, YOU or any company run by or affiliated with you could either have their GSL terminated in Wizards’ sole discretion (6.3) or could be denied permission to use the OGL within 14 days of your return of the acceptance card (license “preamble”).
Rights/Liabilites of EG:
Automatic Termination: Beacuse EB didnt do anything directly, there is no direct sanction here unless EB is found to be in violation of 6.3 by being “affiliated with” Company B that made the new book. The real question for EB is what does section 6.3 mean when it says: “In the event that any portion of a Converted OGL Product Line is manufactured or published by Licensee, or a third party affiliated with Licensee, after the first publication date of a Conversion, Wizards may immediately terminate this License upon written notice.” EB didn’t create the Converted Work (if it is a Converted Work, which I am presuming it is, see below), so absent a finding that EB was “affiliated with” Company B no automatic termination should be triggered. Please note that your fact of “no financial connection” between EB and Company B in my mind does not prevent you from being “affiliated.”
This provision in my view clearly prevents Licensees from creating subsidiary companies to get around the GSL. However, it does create the interesting issue of what happens if EB never adopts the GSL and creates company C, a subsidiary, that does abopt the GSL. In your hypo, both companies use the GSL. The more interesting question is what happens if EG doesn’t adopt the GSL. I’m not going there in this answer.
Non-breach termination: Even if EB is not in violation of the GSL, however, as above, in Wizards’ sole discretion they can terminate your right to use the GSL even without breach. Also, since EB accepted the GSL,
[Note: in my view, the termination provision is a bit unclear though the triggering events for breach to me are rather clear. The license specifies certain events that trigger termination. It doesn’t specifically state that absent breach which results in termination that it can be terminated in Wizard’s sole discretion. But 11.1 lists no preconditions to termination. Thus, though one could argue the license could only be terminated because of breach or by the entire withdrawal of the license globally, I am not reading it that way and I don’t particularly want to be in court making that argument, though others may differ. I see a colorable argument that the GSL can ONLY be terminated either by breach or globally. For my purposes and for this discussion I am reading it as terminable at will and at Wizards’ sole discretion per 11.1.]
Requirement to assist Wizards: Wizards could require EB to help protect its rights (10.3), though you would be reimbursed for certain expenses.
Company B:
Company B is CLEARLY in violation/breach of the GSL in two ways:
1. Company B violates section 12 subsections (a), (b) and (c) when it created the new product using OGC without your permission. The GSL requires Company B to either own or have permission to use the content you are using under the GSL. A person or company doesn’t "own" the OGC from the "Volume of Monsters" just because you made it OGC. That OGC content from VOM is still copyright Evoker Games. Because it is OGC, others ONLY have permission to reuse it under the OGL (see the OGL), not under any other licenses. Therefore Company B would need Evoker Game's permission to use that content, which they did not get (and, depending on how you got the content, you might not even have the full right to give that permission, for instance if your OGC contained the OGC from others).
2. 10.2 requires Company B to “obtain all required licenses and permissions for its use of Third Party IP in the Licensed Products.” Clearly, it didn’t do this. See above.
Effects of termination are obvious: immediate termination on written notice, injunctive relief and Company B is liable for any fees and costs in bringing action by Wizards against them.
Here is the real stickler:
Did Company B Create a “Converted Work” which now prevents you from using the OGL for that work?
That is a big issue. It would be a bigger issue if YOU actually authorized Company B to make its book. So I am taking the easy way out: I don’t see Wizards ever viewing someone’s wrongful creation of a work by stealing your content as creating a Converted Work and thus requiring you to no longer sell that product under the OGL if you yourself have not chosen to update it.
The trickier issue is when a Licensor who themselves do not adopt the GSL licenses content to a third party who makes a 4E version of that content. Presuming the licensee never makes and OGL version of that new product, what does that mean to the original Licensor? I’ll give you a real example: Judges Guild licenses Necro to make Tegel 4E. Necro adopts the GSL and actually makes Tegel 4E. Lets say JG never adopts the GSL. What does my creation of a 4E version of licensed content do to JG? In my view, so long as Necro never makes an OGL version of Tegel 4E, it does nothing to JG and JG could make a OGL version of Tegel if it wanted, but that is unresolved at this point.
Clark