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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The analysis indicates a reduction in the Digital Products category under WoTC. We have some figures around the digital versions of MtG from other sources and have reason to believe it held up OK. Which leaves DDB as the most likely culprit for the dip. Remember that the success of Baldur's Gate 3 didn't distort the figures in Q3, but may well hide issues in Q4.

(What this suggests to me is that there is still a huge market for D&D digital products, but the strategy adopted by WoTC is not as effective as the one developed by Larian as a licensee).
In the Q3 statement, BG3 definitely distorted things. The D&D brand was up something like 80% which included licensing. I have no idea how many copies of BG3 sold in that quarter, I believe Steamspy suggests it's sold something like 20m copies but I've also seen claims they sold 5m copies in early access so if we go with 15m copies sold in Q3 at a few bucks in licensing fee per copy, that easily accounts for the brand seeing a big jump. If DDB was responsible for that bump, they would have featured it more prominently on the report to show something they actually own was resulting in revenue as opposed to a licensing deal they signed 6 years ago that looks great for a short term spike in revenue, but is impossible to repeat over and over. Remember this is the same quarterly report that mentioned the pending eOne sale as a reminder they had more cash coming in next quarter.

To be clear, I'm not saying their sales of books are necessarily down. It's just easy to put 1 and 1 together to notice some patterns in what they're reporting and how they're reporting it that to me at least makes things not look quite as rosy as people seemed to react when they saw the D&D brand as a whole was up a large amount. I'd honestly be shocked if there wasn't a slight drop in sales both due to the upcoming core book refresh and the condensed release schedule this year due to some book delays, but I don't know that we'll ever know that until the eventual Ben Riggs WotC book years from now.
 

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I think it's far more likely that the decrease in book sales are related to the 2024 update than last year's OGL fiasco. PHBs, for example have slowly been sliding down the sales charts at Amazon since the announcement of the revised core books, and those are primarily being purchased by people new to the hobby who probably never heard of the OGL. Couple that with the fact that when you go to DDB, the playtest is often at the top of the home page, and I can see how new players may be deciding to wait a year rather than pick up 2014 now and 2024 next year.
 

I think it's far more likely that the decrease in book sales are related to the 2024 update than last year's OGL fiasco. PHBs, for example have slowly been sliding down the sales charts at Amazon since the announcement of the revised core books, and those are primarily being purchased by people new to the hobby who probably never heard of the OGL. Couple that with the fact that when you go to DDB, the playtest is often at the top of the home page, and I can see how new players may be deciding to wait a year rather than pick up 2014 now and 2024 next year.
That is definitely a factor. Book sales always slump a bit in the period between when a new edition is announced and when it is released. But I suspect there may also be fatigue factor. A lot of people already have enough 5e material to keep them going for years. This tends to occur towards the end of an edition cycle. But releasing a significant update to the rules resets expectations. My concern is that OneDnD might not be enough of a change to reset the natural fatigue that develops as an edition gets older....

My biggest fear is that OneDnD will introduce two major changes. The first is a hard pivot towards a subscription-based electronic platform. If so, this is probably where I get off the train. I don't mind paying a subscription for useful tools, but I will draw the line if they become essential to play the game. I suspect Wizards are smart enough to avoid alienating sections their audience in this way, so I have a cautious hope they will avoid making this migration mandatory.

Secondly, it was clear some factions within WoTC want to revisit licensing arrangements with the release of the 2024 update. My suspicion is that they won't try to terminate the OGL again - they got burned last time. Instead, I suspect they will simply not release any of the new material as OGC. This leaves third-party publishers out in the cold unless they enter a licensing agreement with WoTC. This strategy only works if the changes in the upcoming edition break backward compatibility. The design team were stressing the new edition was backwards compatible with published adventures (note this doesn't say sourcebooks...). But they haven't said anything more about this for months. I worry that marketing or legal may push the design team to make changes simply to break third-party compatibility. I would love to be proven wrong on this front though. A more positive outcome would be the release of an updated SRD under Creative Commons. But we don't know which way they are going to jump yet.
 

Secondly, it was clear some factions within WoTC want to revisit licensing arrangements with the release of the 2024 update. My suspicion is that they won't try to terminate the OGL again - they got burned last time. Instead, I suspect they will simply not release any of the new material as OGC. This leaves third-party publishers out in the cold unless they enter a licensing agreement with WoTC. This strategy only works if the changes in the upcoming edition break backward compatibility. The design team were stressing the new edition was backwards compatible with published adventures (note this doesn't say sourcebooks...).
As a 3PP, I'm not worried about it I were to start publishing 1D&D stuff (I don't plan on it in the near future anyway). Why? Because unless they do a radical change from everything they've put in UA playtests, it will be pretty compatible with 5e. And 5e SRD is already out there. So even if they don't put any new stuff into the open, the mechanics are similar enough that I could easily do material for 1D&D.
 

As a 3PP, I'm not worried about it I were to start publishing 1D&D stuff (I don't plan on it in the near future anyway). Why? Because unless they do a radical change from everything they've put in UA playtests, it will be pretty compatible with 5e. And 5e SRD is already out there. So even if they don't put any new stuff into the open, the mechanics are similar enough that I could easily do material for 1D&D.
This is why I wonder if the changes are going to be more extensive than what we have seen in the playtests. I fear they might make some changes not to improve the game, but to hurt 3PP. I can understand the temptation to build a walled garden. I really hope they don't, but given the financial pressure Hasbro is under it may be tempting to force other publishers into new licensing arrangements. My concern is that changes of that nature might not be made by the design team, but will be forced on them by people higher up the food chain. I'm not panicking yet, but I'm wary. It could also go the other way where they produce a strong ruleset with a licence that encourages community adoption. I expect there will be some folks inside the company making that argument on the basis of network externalities. I think this approach might give 5e a second rennaissance. But it's unclear from the outside which viewpoint has the upper hand.
 

This is why I wonder if the changes are going to be more extensive than what we have seen in the playtests. I fear they might make some changes not to improve the game, but to hurt 3PP. I can understand the temptation to build a walled garden. I really hope they don't, but given the financial pressure Hasbro is under it may be tempting to force other publishers into new licensing arrangements. My concern is that changes of that nature might not be made by the design team, but will be forced on them by people higher up the food chain. I'm not panicking yet, but I'm wary. It could also go the other way where they produce a strong ruleset with a licence that encourages community adoption. I expect there will be some folks inside the company making that argument on the basis of network externalities. I think this approach might give 5e a second rennaissance. But it's unclear from the outside which viewpoint has the upper hand.
At this point, the nature of the new books us quite clear: the new rules are backwards compatible.
 

But it's unclear from the outside which viewpoint has the upper hand.
Well, the OGL crisis ended with the "destroy all competitors" camp clearly losing. Since then, there's been no evidence that anything has changed.

The biggest possible reset will be these new layoffs, which include people in the Hasbro power structure we wouldn't know by name. If attitudes at that level shift, things might change, but there's no reason to believe that's happened yet.

And whoever got WotC to put the SRD into CC really put in a poison pill for WotC going forward: A radical change to the ruleset will just get ignored by other publishers and effectively create another Pathfinder situation, which is precisely what the anti-competitors camp was clearly worried about. So the best way to avoid that sort of forking of the customers is to not go crazy with changes.

That said, until the 2024 PHB is on the street, no one knows for sure what's going to happen. I'm sure that there will be surprises of all sorts in the books when they're released.
 




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