diff --git a/README.md b/README.md
index 7b45fc3..c78ac2b 100644
--- a/README.md
+++ b/README.md
@@ -148,3 +148,13 @@ Likewise you might need to get data and services from the Jellyfin core, Jellyfi
 - Upload your plugin to github.
 
 - Contact the Jellyfin Team!
+
+## A note about licensing
+
+Licensing is a complex topic. This repository features a GPLv3 license template that can be used to provide a good default license for your plugin. You may alter this if you like, but if you do a permissive license must be chosen.
+
+Due to how plugins in Jellyfin work, when your plugin is compiled into a binary, it will link against the various Jellyfin binary NuGet packages. These packages are licensed under the GPLv3. Thus, due to the nature and restrictions of the GPL, the binary plugin you get will also be licensed under the GPLv3.
+
+If you accept the default GPLv3 license from this template, all will be good. However if you choose a different license, please keep this fact in mind, as it might not always be obvious that an, e.g. MIT-licensed plugin would become GPLv3 when compiled.
+
+Please note that this also means making "proprietary", source-unavailable, or otherwise "hidden" plugins for public consumption is not permitted. To build a Jellyfin plugin for distribution to others, it must be under the GPLv3 or a permissive open-source license that can be linked against the GPLv3.