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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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Right. But what other way would they have to incentivize 3PP to move to 1.1? I doubt they’re going to open more IP and offer that up because section 9 would mean it would just be released into the wild. The only other leverage they have is Beyond.

Actually given that it will take time to adapt D&D Beyond to 3rd party content, the one incentive they have to getting folks to switch over to the One D&D OGL/SRD is more extensive access to none setting content then the 5e OGL/SRD offers.

The most obvious case in point is races.

the 5e SRD/OGL excludes all PHB subraces except 1 subrace per race. One D&D doesn't have subraces, so you get them all. Elf (including Wild, High, Drow), Dwarf (Mountain and Hill), Gnome (Rock and Forest), Halfling (Stout and Lightfoot), Orcs, Dragonborn, Tieflings (Abyssal, Infernal, Daemonic), and of then secretly aren't for other books, then the Goliath (Fire, Frost, Storm, Cloud, Hill, and Stone) and the Ardling (I forget what its types are). That is alot more then what the 5e SRD offers. And they might be adding more races still.

And Feats in D&D One aren't optional, they are embedded in Backgrounds and class capstones, which means offering only 1 feat is not enough, they will have to open up much greater access to them then in 5e SRD/OGL.

plus Class types, power source mechanics, maybe even Bastions, etc...
 

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Micah Sweet

Level Up & OSR Enthusiast
DM's Guild creators pay 50% royalties (25% to WotC, 25% to OneBookShelf) and WotC retains the rights to their work. That is hefty, but still a pretty good deal if you want to create and sell D&D content using not just the rules, but WotC's IP. Plus, the DM's Guild is more "visible" for many creators than publishing something similar on other sites, even DriveThruRPG.

And if those terms are too onerous for any given creator, you still have the OGL. DriveThruRPG.com, a sister-site to the DM's Guild, charges creators 25% royalties. I imagine other retail sites have similar deals, and you always have the option of building your own company website with a store.

If you want to publish your "Guide to Faerun's Best Eateries" book and charge for it, the DM's Guild is your only real option. If you are content with publishing instead, "Guide to Fantasy Restaurants" without using any WotC IP, you have lots of options. However, your Realms-specific book might get more visibility on the DM's Guild site and see increased sales, balancing out the higher royalties.

I'd be interested in hearing from creators who do both, sell OGL and Guild products. Does the Guild really boost sales enough to balance out that higher royalty fee? I imagine opinions vary . . . .
I've never seen DMsGuild as more visible than DrivethruRPG. Is that a common feeling?
 

There is a lot of creativity and innovation in the OSR space, for sure. But there is an equally large amount of derivitive crap, many also carrying forward those problematic tropes in fantasy literature and D&D. The genesis of the OSR was to create "clones" of D&D . . . can't get more derivative than that!

There is also a lot of creativity and innovation in the D&D 5E space as well, just as there was when D&D 3E was the current edition. Yes, there's a lot of crap, derivative, full of problematic tropes . . . .

The OSR movement is wonderful and worth paying attention to for amazing games and supplements, but it isn't superior to modern D&D in innovation, creativity, use of tropes, or any other metric other than perhaps personal taste.

To give an example of the kind of #opendnd discourse I'm talking about, I'll screenshot rather than link:

screen shot.png


This account goes on to talk about how they love the game and are just trying to grow it for the sake of the "community" etc etc. What are they selling that they can't sell with the new OGL? They are selling NFTs. There have been whole threads about this and we don't need to get into it, but IMO this is grift, not creativity. Which is bad enough, but the fact they using the language of "openness" and "community" makes it really hollow sounding, to me.

In terms of 5e vs indie game products in general, certainly there's a lot of variance in quality, and it's all a matter of taste. But I'll take the top 20 indie/osr games vs the top 20 5e products any day (in terms of game design, art production, layout and usability, writing, or just sheer creativity).

edit: now Alexander Macris, the fascist game designer (sorry, "far right libertarian"), is standing up against wotc on behalf of the "community." What a time to be alive.
 
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Micah Sweet

Level Up & OSR Enthusiast
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.
Is that a bad thing?
 

mamba

Legend
Ok, I'm not a lawyer or a publisher, but from what I'm guessing is going to happen.

1. They are shutting down any competing software that competes against D&D Beyond or the VTT unless they ask WotC for a license. Ditto video games.
that is already the case today, so no change.
2. They are going to probably use the carrot of access to said software to get people to use 1.1.
I hope so, not sure how they think anyone will switch otherwise ;)
5. Mostly, I think they want to make sure they never create another Paizo situation again.
Paizo is selling books and PDFs, which the 1.1 OGL allows, and since you can just stick with 1.0a too, I am not sure how they can prevent it with releasing 1.1
 


mamba

Legend
One possibility is that WotC will require compliance with 1.1 if you want to see on their marketplace(s) for Beyond and/or the VTT.
that would work, they will need to offer some incentive though, just releasing it and hope people will switch on their own does not feel like a sound strategy, there will have to be something to make it worthwhile
 
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Micah Sweet

Level Up & OSR Enthusiast
Well, "most" yeah. For folks like you and the other 19 companies world-wide making more than $750,000 a year on D&D the maths might be entirely different. The creators making less than that (i.e. most) might be really enticed into signing on to 1.1 for an exclusive platform with 14 million views a month.
Most creators, yes. Not necessarily most content.
 

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