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WotC Announces OGL 1.1 -- Revised Terms, Royalties, and Annual Revenue Reporting

There has been a lot of speculation recently about WotC's plans regarding the Open Gaming License and the upcoming One D&D. Today, WotC shared some information. In short, they will be producing a new Open Gaming License (note that the previous OGL 1.0a will still exist, and can still be used). However, for those who use the new OGL 1.1, which will be released in early 2023, there will be some...

There has been a lot of speculation recently about WotC's plans regarding the Open Gaming License and the upcoming One D&D. Today, WotC shared some information.

In short, they will be producing a new Open Gaming License (note that the previous OGL 1.0a will still exist, and can still be used). However, for those who use the new OGL 1.1, which will be released in early 2023, there will be some limitations added with regards the type of product which can use it, and -- possibly controversially -- reporting to WotC your annual OGL-related revenue.

They are also adding a royalty for those third party publishers who make more than $750K per year.

Interestingly, only books and 'static electronic files' like ebooks and PDFs will be compatible with the new OGL, meaning that apps, web pages, and the like will need to stick to the old OGL 1.0a.

There will, of course, be a lot of debate and speculation over what this actually means for third party creators, and how it will affect them. Some publishers like Paizo (for Pathfinder) and others will likely simply continue to use the old OGL. The OGL 1.0a allows WotC to update the license, but allows licensees to continue to use previous versions "to copy, modify and distribute any Open Game Content originally distributed under any version of this License".


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1. Will One D&D include an SRD/be covered by an OGL?

Yes. First, we’re designing One D&D with fifth edition backwards compatibility, so all existing creator content that is compatible with fifth edition will also be compatible with One D&D. Second, we will update the SRD for One D&D as we complete its development—development that is informed by the results of playtests that we’re conducting with hundreds of thousands of D&D players now.

2. Will the OGL terms change?

Yes. We will release version 1.1 of the OGL in early 2023.

The OGL needs an update to ensure that it keeps doing what it was intended to do—allow the D&D community’s independent creators to build and play and grow the game we all love—without allowing things like third-parties to mint D&D NFTs and large businesses to exploit our intellectual property.

So, what’s changing?

First, we’re making sure that OGL 1.1 is clear about what it covers and what it doesn’t. OGL 1.1 makes clear it only covers material created for use in or as TTRPGs, and those materials are only ever permitted as printed media or static electronic files (like epubs and PDFs). Other types of content, like videos and video games, are only possible through the Wizards of the Coast Fan Content Policy or a custom agreement with us. To clarify: Outside of printed media and static electronic files, the OGL doesn’t cover it.

Will this affect the D&D content and services players use today? It shouldn’t. The top VTT platforms already have custom agreements with Wizards to do what they do. D&D merchandise, like minis and novels, were never intended to be part of the OGL and OGL 1.1 won’t change that. Creators wishing to leverage D&D for those forms of expression will need, as they always have needed, custom agreements between us.

Second, we’re updating the OGL to offer different terms to creators who choose to make free, share-alike content and creators who want to sell their products.

What does this mean for you as a creator? If you’re making share-alike content, very little is going to change from what you’re already used to.

If you’re making commercial content, relatively little is going to change for most creators. For most of you who are selling custom content, here are the new things you’ll need to do:
  1. Accept the license terms and let us know what you’re offering for sale
  2. Report OGL-related revenue annually (if you make more than $50,000 in a year)
  3. Include a Creator Product badge on your work
When we roll out OGL 1.1, we will also provide explanatory videos, FAQs, and a web portal for registration to make navigating these requirements as easy and intuitive as possible. We’ll also have help available to creators to navigate the new process.

For the fewer than 20 creators worldwide who make more than $750,000 in income in a year, we will add a royalty starting in 2024. So, even for the creators making significant money selling D&D supplements and games, no royalties will be due for 2023 and all revenue below $750,000 in future years will be royalty-free.

Bottom line: The OGL is not going away. You will still be able to create new D&D content, publish it anywhere, and game with your friends and followers in all the ways that make this game and community so great. The thousands of creators publishing across Kickstarter, DMsGuild, and more are a critical part of the D&D experience, and we will continue to support and encourage them to do that through One D&D and beyond.
 

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overgeeked

B/X Known World
D&D Beyond has over 10 million registered users, and it is becoming the front door for WotC to communicate with their customers. As THE official destination for all things digital D&D, having product in their store with a user base that big would definitely be a big draw for creators. If integration into the platform is offered as part of that store front, that is even bigger draw (the character options offered are now available in the character builder, the magic items are now in the magic item database, the adventure can be built out fully into the coming VTT and sold, etc.).

We don't know registered user numbers for DM's Guild, but I would guess it is significantly lower than that. Web traffic analysis suggests they get less than a million visits each month. DrivethruRPG is estimated around 2 million visits a month, and their users are across all RPG's and not just D&D. DND Beyond gets about 14 million a month. That would indicate a much larger sales audience than either of the other major store fronts for D&D content, and a huge draw for creators.
Wow. I knew it was big, but damn.
 


overgeeked

B/X Known World
I'm not in favor of the game being, at or near its core, a subscription-based service, even if I'm not going to subscribe one way or another. I just can't help note the irony that some of the people campaigning for #opendnd have monetized every aspect of their "creative" process. They're peddling kickstarters with $175 tiers and Patreons with $20/month subscription levels; wotc would get skewered for charging those kinds of prices. I put "creative" in quotation marks because these products are highly derivative of wotc's game and book design at best and at worst are full of problematic fantasy tropes. It's like listening to an airbnb host complain about corporate greed.
While I like a lot of the creatives involved and a fair amount of their actual output, as someone who started in 1984, I can't help but notice that a whole lot of 3PP are selling older-edition content and ideas to players new to D&D with 5E.
 

Sorry, by "their platform" do you mean D&D Beyond? Because whether or not they'll allow third-party publishers to post their content on D&DB strikes me as being an entirely separate issue.
Hmmm I've been following @overgeeked's thought process that D&D Beyond will have an exclusive 1D&D section. Perhaps this is a wrong train of thought but it makes sense to me and for WotC to put these structures in before they begin releasing 1D&D material. I imagine the online platform will see some heavy investment to make it more marketable going into the future.
 

overgeeked

B/X Known World
Hmmm I've been following @overgeeked's thought process that D&D Beyond will have an exclusive 1D&D section. Perhaps this is a wrong train of thought but it makes sense to me and for WotC to put these structures in before they begin releasing 1D&D material. I imagine the online platform will see some heavy investment to make it more marketable going into the future.
Yeah, it's pure speculation, but it's the only thing that makes any sense at all. Without that, creating a more restrictive OGL makes no sense.
 

Alzrius

The EN World kitten
Hmmm I've been following @overgeeked's thought process that D&D Beyond will have an exclusive 1D&D section. Perhaps this is a wrong train of thought but it makes sense to me and for WotC to put these structures in before they begin releasing 1D&D material. I imagine the online platform will see some heavy investment to make it more marketable going into the future.
That's entirely possible. Trying to guess exactly what WotC is going to do with D&DB is, at this point, gazing into a crystal ball; there's no way we can be sure of what they'll do, though insofar as the new OGL v1.1 goes, I do think they're going to try offering some sort of incentive(s) to entice third-party publishers to use it. If they allow compatible material on D&DB, requiring it to use the OGL v1.1 could potentially be one way to do it.
 


Mistwell

Crusty Old Meatwad (he/him)
That would be 20K, not 5K. I don't know what percentage they would want, but I would think something more akin to 5% than 2% if they stick more to general royalties. OR, it could be a changing scale, say 1% at 750K, 2% at 1 million, 3% at 2 million, 4% at 5 million, and 5% at 10 million and above.
No I am pretty sure I did that calculation correctly. Again, it's ONLY ON THE PORTION ABOVE $750K. So if you made $1M in income from SRD sales, you pay a royalty only on the last $250K. $250K * 2% = $5000. And yes it might be a sliding scale.
 


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