diff --git a/LICENSE b/LICENSE.txt
similarity index 100%
rename from LICENSE
rename to LICENSE.txt
diff --git a/README.md b/README.md
index 74b1c47f..47516677 100644
--- a/README.md
+++ b/README.md
@@ -6,7 +6,7 @@
 
 [redream](http://redream.io) is a work-in-progress SEGA Dreamcast emulator written in C for Mac, Linux and Windows.
 
-redream is licensed under the [GPLv3 license](https://github.com/inolen/redream/blob/master/LICENSE).
+redream is licensed under the GPLv3 license (see [LICENSE.txt](https://github.com/inolen/redream/blob/master/LICENSE.txt)) and uses third party libraries that are each distributed under their own terms (see each library's license in [deps/](https://github.com/inolen/redream/tree/master/deps)).
 
 Ask questions and help answer them on [our Slack group](http://slack.redream.io).