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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mamba

Legend
This bit here makes me think there will be a thumbs up or down process from WotC.
I think this is more intended as marketing for the 3PP, 'we are compatible with One D&D'.

A review process will be tough to swallow, might take long and you already did a lot of the work, potentially for nothing.
 

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FrogReaver

As long as i get to be the frog
Why? 1.0 is much safer than 1.1 might turn out to be, Paizo already proved that there is no risk, and it costs you less as well ;)
On the bright side I'd love to see what Paizo can do with 5e OGC when One drops. I really hope they are working on Pathfinder 5e ;)
 

mamba

Legend
On the bright side I'd love to see what Paizo can do with 5e OGC when One drops. I really hope they are working on Pathfinder 5e ;)
The same thing they could have done the last years, so I am not expecting much there. I wonder if they benefit from this however, much like they did with 4e / the GSL.
 

This is my understanding, please correct me if I’m wrong somewhere on facts, much speculation I’m sure you disagree with also included.

  • The new OGL 1.1 will more restrictive/specific/profitable for WoTC. It will be less good for the creator.
  • Any SRD released under OGL 1.1 can be used under OGL 1.0.

So obviously, no one would use OGL 1.1. So, world today, creators ignore OGL 1.1. But there will likely be some carrots and sticks outside of the OGL to motivate it’s use.

  • Access to WotC controlled spaces. DNDBeyond, new VTT, etc.
  • Access to spaces that need non-OGL agreements with WoTC once the current agreements expire. “The top VTT platforms already have custom agreements with Wizards.” If they do, theoretically WoTC could use those agreements to lock out non-OGL 1.1 content from being used with the official content.

So now, we get to the question of why is WoTC trying to monetize the 20 creators who make over 750k a year on D&D OGL content. It’s not going to be a lot of money as the world today exists. So, I don’t think that’s what they care about.

Anything produced and sold inside one of their platforms they can just hit with the Apple App Store style 30% cut so what do they care about this OGL part? With the VTT they can just only allow stuff sold on the platform and take the 30% standard Cut. Pretty sure that’s the plan there.

With DNDBeyond I doubt that would fly, it’s more designed as a hub of reasources, plenty of official stuff to buy or subscribe to. Here I think the play is to allow 3PPs using OGL 1.1 to create stuff inside the site and allow sales outside the site to bring in a token to allow access.

Anyway, leading up to my point, the monetization aspect I don’t think is about making money, the money won’t be significant unless there’s another Pathfinder style fork. They are guarding against some 3PP (think what Critical Role has done on You Tube, or, Pathfinder happening again) scoring big and pied papering away players. With stuff on OGL 1.1 they can make bank if there’s ever a Facebook for MySpace style transition of their game. Expect OGL 1.1 revenue sharing in excess of say $20MM to be like 50%.

the ability to import all the fun 3rd party stuff you’ve bought elsewhere or got free or whatever. I think in that situation, they will allow
 


overgeeked

B/X Known World
They are guarding against some 3PP (think what Critical Role has done on You Tube, or, Pathfinder happening again) scoring big and pied papering away players
Critical Role has a lot of fans who are loyal to CR but not necessarily WotC. If anyone could fork the fanbase, it’s Mercer and Co. Depending on the specifics of 1.1, I kinda hope they do. Though their publishing ventures so far have been…not great. Their first book cut corners to save money on paper and caused more than a few problems for fans. Considering Matt and Liam are friends with Matt Colville, it’s kinda surprising they didn’t have him publish their book.
 

Hussar

Legend
I mean open books = open license is certainly a novel perspective.
How is reporting if you made more than 50 grand in the last year an "open book"? They're not asking to see your actual spreadsheets. They're asking to see your (presumably) sales figure. Y'know, that stuff that is available to any shareholder in a publicly traded company? That stuff that is reported pretty routinely for many, many businesses?

And, note, presumably, that number would be confidential. So, they know that Hussar sold Book X for Y dollars last year. Whoopdeedoo? Is this actually a secret or something?

Hell, I could see it as a badge of pride. "I HAVE to report my sales to WotC".
 

The second bullet is incorrect. Any Open Game Content can be used under OGL 1.0, but there’s nothing stopping Wizards from releasing a OneD&D SRD with no OGC in it.
So, they could release a SRD for One D&D that only contains new stuff, not previously under a SRD and say it’s not OGC. And say in say in OGL 1.1 that it allows SRD stuff not OGC? Ok, I get that. But what would that be? Since game mechanics not protected, it would only be the names of new abilities or feats, and not those abilities themselves. Seems pretty pointless. And not a reason to do all this….see later in my post.
 

mamba

Legend
How is reporting if you made more than 50 grand in the last year an "open book"? They're not asking to see your actual spreadsheets. They're asking to see your (presumably) sales figure. Y'know, that stuff that is available to any shareholder in a publicly traded company?
which most 3PP aren’t
That stuff that is reported pretty routinely for many, many businesses?
not to a different business in your field
And, note, presumably, that number would be confidential. So, they know that Hussar sold Book X for Y dollars last year. Whoopdeedoo? Is this actually a secret or something?
yes, it obviously is. I mean no one is forcing you to keep it one, but by default it is
Hell, I could see it as a badge of pride. "I HAVE to report my sales to WotC".
not sure what there is to be proud of, but feel free
 

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