diff --git a/LICENSE.txt b/LICENSE.txt
new file mode 100644
index 0000000..91b6804
--- /dev/null
+++ b/LICENSE.txt
@@ -0,0 +1,21 @@
+MIT License
+
+Copyright (c) 2021 Jai Sharma
+
+Permission is hereby granted, free of charge, to any person obtaining a copy
+of this software and associated documentation files (the "Software"), to deal
+in the Software without restriction, including without limitation the rights
+to use, copy, modify, merge, publish, distribute, sublicense, and/or sell
+copies of the Software, and to permit persons to whom the Software is
+furnished to do so, subject to the following conditions:
+
+The above copyright notice and this permission notice shall be included in all
+copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
+IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY,
+FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE
+AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER
+LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM,
+OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE
+SOFTWARE.
diff --git a/README.md b/README.md
index 0edbaa1..2d7faf0 100644
--- a/README.md
+++ b/README.md
@@ -2,8 +2,7 @@
 
 ## ⚠️  This project is a work in progress ⚠️
 
-A desktop implementation of 0x40 Hues from the [0x40 Hues project](https://0x40hues.blogspot.com/).
-
+A desktop implementation of 0x40 Hues from the [0x40 Hues project](https://0x40hues.blogspot.com/)  
 Inspired by [mon's Webhues](https://0x40.mon.im/)
 
 ## how to use
@@ -141,3 +140,16 @@ An example format of a `images.xml` is as follows:
       to indicate this image is part of an animated set
       * NOTE: Support to handle this element and animated images is currently
         not implemented
+
+## license and copyright
+
+The source code for this software is licensed under the MIT license.  
+See `LICENSE.txt` file in this repo for more information.
+
+The file `hues.Game.Tests/Resources/Tracks/sample.mp3` is copyright of Kevin
+MacLeod and is licensed under the Creative Commons Attribution License 4.0.
+
+The following files are copyright of The 0x40 Hues Team:
+- `hues.Game.Tests/Resources/Respacks/DefaultImages.zip`
+- `hues.Game.Tests/Resources/Respacks/DefaultsHQ.zip`
+