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 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".

OGLs, SRDs, & One D&D

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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.

 

[darjr]

Those people weren't me.

But if it was me, I would say that the gulf between "There is no third party content available" and "We'll be taking a cut of your sales (as I would be very surprised if you could buy this new VTT content on anything but their own platform) and then also taking royalties, oh and looking at your financials" is pretty vast.

They take a cut on DMSguild? How would access to the VTT have been different? In fact I thought everyone assumed it would be a DMSguild like arrangement? If it's an OGL 1.1 arrangement it'll be considerably cheaper for the VAST majority of publishers.

 

[Loren the GM]

Interesting that WotC changed from an Inc. to an LLC. That said, the specifics of what's under the Section 15 of each product that uses the OGL (which includes the different SRDs) are going to be different, as the license requires them to list a copyright notice for each such product in any work which uses the OGL. Which is to say, that's a difference between the SRDs rather than the different versions of the OGL itself.

Of course. I totally spaced on that as I was doing the comparison, that of course makes sense for Section 15. Thanks for the reminder on that!

 

[eyeheartawk]

They take a cut on DMSguild? How would access to the VTT have been different? In fact I thought everyone assumed it would be a DMSguild like arrangement? If it's an OGL 1.1 arrangement it'll be considerably cheaper for the VAST majority of publishers.

I find the terms on DMs Guild to be pretty bad (mainly in the revenue split and the IP terms for your own content), but putting that aside do DMs Guild participants also pay a royalty on top of that or have to open their books? Because, I don't think they do? That's an honest question, I'm actually not so sure I don't much follow that space.

 

[Malmuria]

Some of the 5e creators who are being very vocal about this on twitter are coming off as very entitled to me. They're framing an updated OGL as being a matter of "allowing" creative expression or not, ignoring not only that you can still use the existing OGL, but that you can also create as much ttrpg stuff you want for...other games. Or even your own game. Lots of people do it. What they want is continued access to the 5e market, which is big and has lots of people wanting to spend money.

 

[darjr]

I find the terms on DMs Guild to be pretty bad (mainly in the revenue split and the IP terms for your own content), but putting that aside do DMs Guild participants also pay a royalty on top of that or have to open their books? Because, I don't think they do? That's an honest question, I'm actually not so sure I don't much follow that space.

I get you dint.
DMsGuild takes 50% of your sales and essentially owns the rights.

Edited the above, in the DMsGuild yiu agree not to sell those products anywhere else.

 

[Alzrius]

You're right. But that doesn't make sense for WotC. Why would they bother if no matter what they do it's all OGL anyway? There's something missing. Another shoe to drop in all this. It doesn't do any good for WotC to bother unless something else is changing.

My guess (and I want to stress that this is just a guess) is that this is the very most that they can do, at least where they OGL is concerned.

I mean, I think WotC knows that even if they don't post a 1D&D SRD, the game is likely back-compatible enough with 5E that it won't matter, so they're going to save themselves the bad press by posting a new SRD anyway. What I can't figure out is why they think anyone would use the OGL v1.1 when it has reporting requirements, registration requirements, and mandates royalties, instead of just using the existing OGL v1.0a.

Section 9 of the OGL flat-out states that any Open Game Content (including the 1D&D SRD) can be used with any version of the OGL, so there's no reason for anyone to use the new version, as that seems to offer additional restrictions for no real advantages. The only thing I can think of is that they'll say this is a separate license that doesn't count as a new version of the OGL in terms of using its Open Game Content with older versions of the OGL...but the very fact that they're calling it the "OGL v1.1" flies in the face of that.

 

[eyeheartawk]

The opening of your financials really bothers me. That's something you have to do if you have like a separate bespoke licensing agreement for some IP. Like say you're making an "official" Star Wars RPG or something. That's not really in-line with what the OGL has been and should be. They're changing it to be more like the former that I described.

Not good.

 

[Retreater]

I read it as that way too, but since the OGL is irrevocable by design and you can just shrug and use v1.0a indefinitely instead. Why would anyone use version 1.1? I don't really see how that changes things in Wizard's favor.

Because it's going to be "the current edition." And if you want to keep up with that, to have the latest/most compatible version of the game, you'll have no choice. Otherwise, you're publishing a retroclone.

 

[overgeeked]

Everyone was worried about WotC splitting the fandom with an updated edition, looks like it'll be because of the updated OGL. If the speculation of DNDBeyond and the VTT being exclusively 1.1, this will literally create a digital divide between OneD&D and 5E.

 

[GDGD]

I get you dint.
DMsGuild takes 50% of your sales and essentially owns the rights.

Edited the above, in the DMsGuild yiu agree not to sell those products anywhere else.

With DMsGuild, you have to hope the exposure more than doubles your sales. If it does, it's still a net win after you cough up 50% of the revenues. If not, you'd be better off under the OGL either on DriveThru or doing your own thing.