diff --git a/README.md b/README.md
index 306523679ea5..74702bf2120a 100644
--- a/README.md
+++ b/README.md
@@ -28,3 +28,8 @@
 <a href="https://www.lost-pixel.com/"><img src="https://user-images.githubusercontent.com/29632358/168112844-77e76a0d-b96f-4bc8-b753-cd39f4afd428.png" width="50" height="50" alt="Lost Pixel" /></a>
 
 Thanks to [Lost Pixel](https://www.lost-pixel.com/) for providing the visual testing platform that helps us review UI changes and catch visual regressions.
+
+## License
+
+- **Webstudio core** (all functionality in this repository) is free/open-source under AGPL-3.0-or-later.
+- **sdk-components-animation** package (optional) is proprietary. You must accept the Webstudio, Inc. EULA located in [sdk-components-animation/LICENSE](./packages/sdk-components-animation/LICENSE) before using it.