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Dungeons & Dragons’ New License Tightens Its Grip on Competition

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Dungeons & Dragons’ New License Tightens Its Grip on Competition

A dragon roasting several polyhedral dice.

Illustration: Vicky Leta

The new Dungeons & Dragons Open Gaming License, a doc which permits an enormous group of unbiased publishers to make use of the essential sport guidelines created by D&D proprietor Wizards of the Coast, considerably restricts the type of content material allowed and requires anybody earning profits underneath the license to report their merchandise to Wizards of the Coast immediately, in response to an evaluation of a leaked draft of the doc, dated mid-December.

Despite reassurances from Wizards of the Coast last month, the unique OGL will grow to be an “unauthorized” settlement, and it seems no new content material might be permitted to be created underneath the original license.

What is the Dungeons & Dragons Open Gaming License?

The authentic OGL is what many up to date tabletop publishers use to create their merchandise throughout the boundaries of D&D’s reproducible content material. Much of the unique OGL is devoted to the System Resource Document, and consists of character species, courses, tools, and, most significantly, normal gameplay constructions, together with fight, spells, and creatures.

The creation of the OGL model 1.0, which was initially revealed in 2000, has allowed a bunch of out of doors designers and publishers, each novice {and professional}, to make new merchandise for a sport that continues to be completely owned by Hasbro subsidiary Wizards of the Coast (WotC). While this association generally created merchandise that immediately competed with WotC publications, it additionally allowed the sport to flourish and develop because of the assets created by the broader D&D neighborhood.

In 2022, when WotC introduced plans to develop a revised version of the Dungeons & Dragons guidelines, codenamed One D&D, the corporate mentioned it could replace the OGL as nicely. The OGL has been tweaked a number of occasions since its 2000 launch, and WotC has at occasions transitioned to different royalty-free licenses, however the authentic OGL 1.0 had primarily remained intact till the corporate mentioned it could develop OGL model 1.1.

What is within the new OGL 1.1?

Quite a bit, truly. While the unique open gaming license is a comparatively quick doc, coming in at underneath 900 phrases, the brand new draft of the OGL 1.1, which was offered to io9 by a non-WotC developer, is over 9,000 phrases lengthy. It addresses new applied sciences like blockchain and NFTs, and takes a powerful stance towards bigoted content material, explicitly stating the corporate could terminate the settlement if third-party creators publish materials that’s “blatantly racist, sexist, homophobic, trans-phobic, bigoted or otherwise discriminatory.”

One of the most important modifications to the doc is that it updates the beforehand accessible OGL 1.0 to state it’s “no longer an authorized license agreement.” By ending the unique OGL, many licensed publishers should fully overhaul their merchandise and distribution in an effort to adjust to the up to date guidelines. Large publishers who focus nearly completely on merchandise primarily based on the unique OGL, together with Paizo, Kobold Press, and Green Ronin, might be underneath stress to replace their enterprise mannequin extremely quick.

This is not any mistake. According to the doc procured by io9, the brand new agreements states that “the Open Game License was always intended to allow the community to help grow D&D and expand it creatively. It wasn’t intended to subsidize major competitors, especially now that PDF is by far the most common form of distribution.”

This sentiment is reiterated later within the doc: The “OGL wasn’t intended to fund major competitors and it wasn’t intended to allow people to make D&D apps, videos, or anything other than printed (or printable) materials for use while gaming. We are updating the OGL in part to make that very clear.”

Paizo Inc., writer of the Pathfinder RPG, one among D&D’s largest rivals, declined to touch upon the modifications for this text, stating that the foundations replace was a sophisticated and ongoing state of affairs.

Chris Pramas, founder and president of Green Ronin Publishing, mentioned that even supposing one among their very own merchandise—Mutants and Masterminds—was revealed underneath the unique OGL in 2002, and continues to be accessible right this moment, they’d not seen the up to date OGL, and they don’t imagine there may be “any benefit to switching to the new one as described.”

Wizards of the Coast declined to remark for this text or reply particular questions in regards to the leaked OGL doc. A spokesperson directed io9 to a blog post the company published in December, which reassures the neighborhood that this OGL is not going to materially have an effect on the vast majority of individuals working within the trade.

What will occur to the unique OGL?

The authentic OGL granted “perpetual, worldwide, non-exclusive license” to the Open Game Content (generally referred to as the System Resource Document) and directed that licensees “may use any authorized version of this License to copy, modify and distribute any Open Game Content originally distributed under any version of this License.” But the up to date OGL says that “this agreement is…an update to the previously available OGL 1.0(a), which is no longer an authorized license agreement.”

The new doc clarifies additional within the “Warranties” part that “this agreement governs Your use of the Licensed Content and, unless otherwise stated in this agreement, any prior agreements between Us and You are no longer in force.”

According to attorneys consulted for this text, the brand new language could point out that Wizards of the Coast is rendering any future use of the unique OGL void, and asserting that if anybody needs to proceed to make use of Open Game Content of any sort, they might want to abide by the phrases of the up to date OGL, which is a much more restrictive settlement than the unique OGL.

Wizards of the Coast declined to make clear if that is actually the case.

Who might be affected by the brand new OGL 1.1?

If the unique license is actually not viable, each single licensed writer might be affected by the brand new settlement, as a result of each business creator might be requested to report their merchandise, new and outdated, to Wizards of the Coast.

Additionally, whereas the unique OGL didn’t particularly define what sort of content material third-party creators might make accessible and revenue from, the up to date OGL may be very particular: The up to date license “only allows for creation of roleplaying games and supplements in printed media and static electronic file formats. It does not allow for anything else, including but not limited to things like videos, virtual tabletops or VTT campaigns, computer games, novels, apps, graphics novels, music, songs, dances, and pantomimes. You may engage in these activities only to the extent allowed under the Wizards of the Coast Fan Content Policy or separately agreed between You and Us.”

The Fan Content Policy might be learn right here, however in broad strokes, it permits for free content material “based on or incorporating our IP. Fan Content includes fan art, videos, podcasts, blogs, websites, streaming content, tattoos, altars to your cleric’s deity, etc.”

The leaked OGL 1.1 draft signifies that WotC could not give licensees a plenty of time to regulate and conform to this new coverage: The doc reads, “if you want to publish SRD-based content on or after January 13, 2023 and commercialize it, your only option is to agree to the OGL: Commercial.” io9’s supply indicated that the ultimate model of the doc was initially supposed for launch on January 4, which might have given firms and creators seven enterprise days to agree and comply.

What’s altering within the new OGL?

The up to date OGL is split into Non-Commercial and Commercial agreements, and the foundations are barely totally different should you’re earning profits from direct gross sales or entry to your work. The largest change between the 2 sections is a Tiered Earning system (extra on that later), new royalties, and guidelines for using crowdfunding. There is a few readability given about Patreon and ideas—principally in case your content material is accessible without spending a dime elsewhere, however individuals can help you voluntarily with out having their entry affected, you’re thought-about non-commercial.

Additionally, all creators might want to clearly and intentionally distinguish “their content” from “licensed content.” The new doc reads that this should be completed “in a way that allows a reader of Your Licensed Work to understand the distinction without checking any other document.” The up to date OGL suggests a unique coloration font, asterisks on the web page, “or putting a separate index or list in the back of Your Licensed Work that lists out what, exactly, You used from the SRD.”

Other components of the brand new OGL doc create a tiered system of categorizing licensees primarily based on their revenues from commercialized work underneath the up to date OGL.

Will OGL publishers should pay royalties?

Probably not. Unless they’re making over $750,000, licensees get to maintain the cash they earn. But the brand new OGL states that the Commercial Agreement “covers all commercial uses, whether they’re profitable or not.” So should you go into the pink on a Kickstarter that earned $800K in backing cash, you’ll nonetheless owe Wizards of the Coast, no matter the truth that you didn’t revenue out of your enterprise.

“Note that if You appear to have achieved great success… from producing OGL: Commercial content, We may reach out to You for a more custom(and mutually beneficial) licensing arrangement,” the doc notes, indicating that WotC is open to creating customized contracts and agreements, however at their discretion. This might point out that “subsidized competition” like Pathfinder won’t get a terrific deal.

The income tiers are as follows:

A. Initiate Tier. If You have registered a minimum of one Licensed Work however haven’t generated $50,000 or extra in complete (gross) income from OGL: Commercial merchandise in a given yr, You are on the Initiate Tier.

B. Intermediate Tier. If Your Licensed Work(s) have generated greater than $50,000 in complete income in a given yr however lower than $750,000, You are on the Intermediate Tier.

C. Expert Tier. If Your Licensed Work(s) have generated a minimum of $750,000 in complete income in a given yr, You are on the Expert Tier.

According to the doc, “If, and only if, You are generating a significant amount of money (over $750,000 per year across all Licensed Works) from Your Licensed Works, The revenue You make from Your Licensed Works in excess of $750,000 in a single calendar year is considered “Qualifying Revenue” and You are chargeable for paying Us 20% or 25% of that Qualifying Revenue.”

The draft goes on to clarify that should you make $750,001, you’ll owe Wizards of the Coast 25 cents, as they’re solely asking for royalties on the one greenback made in extra of the Expert Tier. As said of their announcement in December, WotC suspects that “less than twenty” firms are on the Expert Tier.

Who has to register work with Wizards of the Coast?

The up to date OGL says that “no matter what Tier You are in or how much money You believe Your product will make, You must register with Us any new Licensed Work You intend to offer for sale… including a description of the Licensed Work. We’ll also ask for Your contact information, information on where You intend to publish the Licensed Work, and its price, among other things.”

Creators may also be required to make use of a selected badge in an effort to publicly and clearly determine their work as lined by the up to date OGL, and so they should give WotC a replica of the publication. The early draft means that many of those processes might be dealt with by way of the corporate’s official digital toolset, D&D Beyond.

This is a big change from the unique OGL, which allowed creators to publish with out reporting. While it is sensible that Wizards needs to observe who’s utilizing the Open Game Content, this appears like an inconceivable process. People are promoting their work throughout dozens of platforms, and generally one product is being bought on a number of platforms. Whatever the reporting system appears to be like like, the most important burden will possible be on the smallest creators.

Kickstarter is D&D’s most well-liked crowdfunding platform

Online crowdfunding is a brand new phenomenon for the reason that authentic OGL was created, and the brand new license makes an attempt to deal with how and the place these fundraising campaigns can happen. The OGL 1.1 states that if creators are members of the Expert Tier, “if Your Licensed Work is crowdfunded or sold via any platform other than Kickstarter, You will pay a 25% royalty on Qualifying Revenue,” and “if Your Licensed Work is crowdfunded on Kickstarter, Our preferred crowdfunding platform, You will only pay a 20% royalty on Qualifying Revenue.”

This implies that the up to date OGL is immediately encouraging Kickstarter over every other platform, together with non-public firm websites, as any non-Kickstarter income over $750K will incur a 25% royalty, and solely Kickstarter income will get a break. There is not any motive said within the OGL 1.1 why Kickstarter is Wizards’ most well-liked crowdfunding platform.

However, Jon Ritter, Director of Games at Kickstarter, responded on Twitter, saying that “Kickstarter was contacted after WoTC decided to make OGL changes, so we felt the best move was to advocate for creators, which we did. Managed to get lower % plus more being discussed. No hidden benefits / no financial kickbacks for KS. This is their license, not ours, obviously.”

There can be a bit within the up to date OGL devoted to situations surrounding crowdfunding. Even for Initiate and Intermediate tiers, there are strings hooked up to utilizing any crowdfunding platform, not simply Kickstarter, to get a mission off the bottom. The two details are that “you may only crowdfund the production of Licensed Works,” and that “no infringing materials are given out as perks or rewards.”

The energy is again at Wizards of the Coast

While there may be a lot extra to parse, the primary takeaway from the leaked OGL 1.1 draft doc is that WotC is retaining energy shut at hand. There is not any point out of perpetual, worldwide rights given to creators (which was current in part 4 of the unique OGL), and one of many caveats is that the corporate “can modify or terminate this agreement for any reason whatsoever, provided We give thirty (30) days’ notice.”

WotC additionally will get the proper to make use of any content material that licensees create, whether or not business or non-commercial. Although that is couched in language to guard Wizards’ merchandise from infringing on creators’ copyright, the doc states that for any content material created underneath the up to date OGL, no matter whether or not or not it’s owned by the creator, Wizards could have a “nonexclusive, perpetual, irrevocable, worldwide, sub-licensable, royalty-free license to use that content for any purpose.”

There are plenty of implications on this prolonged coverage, and the ramifications of this up to date OGL might have a chilling impact on new licensed merchandise. As solely “static” merchandise are included, all work that publishers do for digital tabletops could should be provided as non-commercial, free merchandise, which de-incentivizes their manufacturing. The royalties related to any firm making above $750K might additionally immediate publishers to carry again additional merchandise or scale down tasks so that they keep underneath the Expert Tier.

Wizards of the Coast is clearly anticipating these OGL modifications to be met with some resistance. The doc does observe that if the corporate oversteps, they’re conscious that they “will receive community pushback and bad PR, and We’re more than open to being convinced that We made a wrong decision.”

io9 has reached out to further publishers and creators, and can replace this text as new data turns into accessible.

This article has been up to date with a remark from Kickstarter’s Director of Games clarifying the 5% lower in royalties owed on campaigns primarily based on the OGL 1.1 run on Kickstarter.


Want extra io9 information? Check out when to anticipate the newest Marvel, Star Wars, and Star Trek releases, what’s subsequent for the DC Universe on movie and TV, and every part you might want to find out about the way forward for Doctor Who.


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