‘Dungeons & Dragons’ Uproar Shows Risks of Tighter IP Licensing

“Dungeons & Dragons” publisher Wizards of the Coast’s retraction of a proposal that would’ve significantly restricted its open gaming license demonstrates how companies must weigh the risk of public backlash when looking to tighten previously permissive intellectual property practices.

The maker of the popular tabletop role-playing game faced calls for boycotts last month after its draft licensing terms were leaked. The plan would have required fans and third-party content creators—such as the popular Dungeons & Dragons web series “Critical Role"—to register all paid uses of content based on Wizards’ IP and pay potentially pricey royalties, among other proposed changes.

Hasbro-owned ...