Thank you. I honestly didn't know and I was asking an honest question, so, it's nice to get straightforward answers.
So, how is this so different than a company using crippled content under the OGL?
For me, CC BY is more open and more widely used than ORC and gives more flexibility to downstream producers to decide what they do and don’t want to release and I think that’s fine. That’s why I publish a lot of my material under a CC BY license.
The problem with CC-BY is that it is essentially all or nothing for a specific document. Each publisher would essentially have to make two documents (if they had IP they wanted to protect, like a setting, town, characters, etc). It's not really a good fit for the TTRPG industry.
The difference between a source using the OGL (and the publisher declaring anything new mechanically is IP and not open) and the ORC. Is that the ORC explicitly says that new mechanics, and the material describing said new mechanics is "Licensed Material" ie OGC. Anything else is
trademarks, world lore, story arcs, distinctive characters, and visual art and is "Reserved Material". The owner can release none or any of that as they wish. with explicit statements.
What KP did with the Black Flag & ToV was somewhat unnecessary under the final text of the ORC, but I'm pretty sure it was started before the ORC was, and I think they didn't want to redo a bunch of their plans midstream after the final text was released. AFAIK ToV was released under the ORC. so that the Reserved Materials could be preserved, but mechanics and text for mechanics are open.
Edit: Oh, I see that ToV is NOT released under the ORC, just the Black Flag. This option is also only available to the original creators of a system, not downstream.
@Hussar The ORC Axe (FAQ) does a pretty good job of explaining the license and use cases in laymen's terms.