diff --git a/README.md b/README.md
index a223d091..0dc7138b 100644
--- a/README.md
+++ b/README.md
@@ -6,6 +6,16 @@ It is built around extending [libnx](https://github.com/switchbrew/libnx).
 
 It also provides bindings for custom extensions to Horizon OS implemented by [Atmosphère](https://github.com/Atmosphere-NX).
 
+Licensing
+=====
+
+This software is licensed under the terms of the GPLv2, with exemptions for specific projects noted below.
+
+You can find a copy of the license in the [LICENSE file](LICENSE).
+
+Exemptions:
+* The [yuzu emulator project](https://github.com/yuzu-emu/yuzu) is exempt from GPLv2 licensing and may (at its option) instead license any source code authored for the libstratosphere project as GPLv2 or later.
+
 Credits
 =====
 
@@ -18,4 +28,4 @@ In addition to those credited in [Atmosphère's credits](https://github.com/Atmo
 * __lioncash__
 * __misson20000__
 * __neobrain__
-* __yellows8__
\ No newline at end of file
+* __yellows8__