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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Were Hasbro & WotC always like this? I recall it was WotC that saved D&D from TSR's implosion and poor management.

And frankly, weren't they making lots of money with the licensing they already had for 5e?
 

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Were Hasbro & WotC always like this? I recall it was WotC that saved D&D from TSR's implosion and poor management.

They've gone back and forth on open gaming over time, but this is by far the worst I've ever seen. There seems to have been a big culture shift recently when they replaced their leadership with former Microsoft execs. If I had to guess, this initiative is likely coming primarily from Cynthia Williams who now heads WoTC, since Chris Cocks who now heads Hasbro was head of WoTC for a while, and nothing like this was ever intimated at the time. But both are from Microsoft.
 

They've gone back and forth on open gaming over time, but this is by far the worst I've ever seen. There seems to have been a big culture shift recently when they replaced their leadership with former Microsoft execs. If I had to guess, this initiative is likely coming primarily from Cynthia Williams who now heads WoTC, since Chris Cocks who now heads Hasbro was head of WoTC for a while, and nothing like this was ever intimated at the time. But both are from Microsoft.
I would say it is even more likely a board level thing. Outside analyst at big shareholders looking at D&D financials once it began to gain prominence at board and investor levels.
 

And what WotC currently infers was original intent is quite the opposite of what was going on more than two decades ago. While they were working on the original OGL they were literally giving away material to competitors to equip them so as to be ready to begin relasing material IMMEDIATELY upon the release of 3E. There will have to be some majorly successful judge shopping for WotC to come out on top in any court case regarding the "unauthorization" of OGL 1.0a given the actual history and intentions.

Heck, there are actual entire game systems released under OGL 1.0a that have never used anything from any WotC published Systems Reference Document. Are WotC going to claim the right to take everything from the Dr. Who RPG as their IP under this alleged "unauthorization"? How will the BBC react to Hasbro saying it now owns Cybermen and Daleks?
No. C7 isn’t empowered to sublicense BBC IP to third parties. Even if they signed a contract like the new OGL which did so, it would not be valid. You can’t grant rights you don’t have the power to grant.
 


I would say it is even more likely a board level thing. Outside analyst at big shareholders looking at D&D financials once it began to gain prominence at board and investor levels.

My own wild guess would be that the 2022 M:TG disaster and subsequent fall in Hasbro share value weakened Cocks's position as CEO of Hasbro, which gave recent appointee Williams the opportunity to push for a change in strategy for D&D.
 

My own wild guess would be that the 2022 M:TG disaster and subsequent fall in Hasbro share value weakened Cocks's position as CEO of Hasbro, which gave recent appointee Williams the opportunity to push for a change in strategy for D&D.
I mean anything is possible but Cocks would at least be aware of the 4e situation, that is where I am basing my "its the board". The board has the power to push on both or Cocks if Williams is on board.
 

To me this all looks terribly self-inflicted by the creative companies. Everyone currently is/was jumping on the train to profit from D&D 5e. On the positive side, using D&D 5e as vehicle increased the customer base. Kickstarters who would have struggled to get a five digit pledge amount could easily generate 6 digit amounts by catering to the D&D 5e crowd. Even companies with their own strong and unique properties felt the need to create a 5e version of their products to gain market shares. On the negative side, the SRD/OGL is stifling creativity. Instead of a plurality of RPG systems, the customers get the same system applied over and over again. Even if levels and classes are not a good fit for the setting.

Now everyone blames WotC/Hasbro on what they supposedly intend to do (as the final version of OGL 1.1 has not been published anywhere at all), instead of looking at their own business decisions that got them into that place. Business and influencers have chosen to play in WotC‘s pond in order to get more customers/viewers/whatever. Now WotC/Hasbro seems to have figured out a way to change the rules and everybody is scrambling.

Worst outcome: the D&D 5e community fractures into lots of tiny niche games. Best outcome: the major publishers get together, create a new version of a truly free OGL and an accompanying SRD that isn‘t even remotely D&D based.

To me this all looks like the vaunted free market economy at it‘s best/worst. Deal with it. The publishers can always chose to fall in line instead of risking their business model. And I bet, that is what the higher-ups at WotC/Hasbro are betting on. Especially, since this outcry probably has next to no effect on the sales numbers of D&D,
 

No. C7 isn’t empowered to sublicense BBC IP to third parties. Even if they signed a contract like the new OGL which did so, it would not be valid. You can’t grant rights you don’t have the power to grant.
Agreed, which leads me to believe that lawfare isn't what WotC/Hasbro are up to here. At this point I have to believe the intention of the leaked portion is that accepting OGL 1.;1 and releasing content under it binds you to OGL 1.1 and that content can never go back to OGL 1.0a. To put it simply, OGL 1.0a is not an authorized license for anything that is released under OGL 1.1.
 

They've gone back and forth on open gaming over time, but this is by far the worst I've ever seen. There seems to have been a big culture shift recently when they replaced their leadership with former Microsoft execs. If I had to guess, this initiative is likely coming primarily from Cynthia Williams who now heads WoTC, since Chris Cocks who now heads Hasbro was head of WoTC for a while, and nothing like this was ever intimated at the time. But both are from Microsoft.
If lawfare is the plan for WotC/Hasbro, then Cynthia Williams is the corporate reincarnation of Lorraine Williams with ten thousand times the evil.
 

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