diff --git a/MIT-LICENSE b/MIT-LICENSE
new file mode 100644
index 000000000..f8e91547b
--- /dev/null
+++ b/MIT-LICENSE
@@ -0,0 +1,22 @@
+Copyright (c) 2007, Tammer Saleh, Thoughtbot, Inc.
+
+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 b/README
index bdc632fd7..f35348e46 100644
--- a/README
+++ b/README
@@ -120,4 +120,4 @@ Shoulda is maintained by {Tammer Saleh}[mailto:tsaleh@thoughtbot.com], and is fu
 
 = License
 
-Shoulda is Copyright © 2006-2007 Tammer Saleh, Thoughtbot. It is free software, and may be redistributed under the terms specified in the README file of the Ruby distribution.
\ No newline at end of file
+Shoulda is Copyright © 2006-2007 Tammer Saleh, Thoughtbot. It is free software, and may be redistributed under the terms specified in the MIT-LICENSE file.