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diff --git a/README.md b/README.md
index 88e606f..3aa41fb 100644
--- a/README.md
+++ b/README.md
@@ -135,6 +135,8 @@ The following components exist:
- `libcompat.a` built from files in `lib/compat` contains minimal
implementations of POSIX or GNU functions that are not available on some
platforms.
+ - `libutil.a` contains common utilities that are used internally by both the
+ programs and `libsquashfs.so`.
Optionally, `libsquashfs` can be compiled with builtin, custom versions of zlib
and lz4. The configure options `--with-builtin-zlib` and `--with-builtin-lz4`
@@ -149,8 +151,8 @@ The `tests` sub-directory contains unit tests for the libraries.
The `extras` sub-directory contains a few demo programs that use `libsquashfs`.
To allow 3rd party applications to use `libsquashfs.so` without restricting
-their choice of license, the code in the `lib/sqfs` sub-directories is
-licensed under the LGPLv3, in contrast to the rest of this package.
+their choice of license, the code in the `lib/sqfs` and `lib/util` directories
+is licensed under the LGPLv3, in contrast to the rest of this package.
## A Note on LZO Support
@@ -180,4 +182,10 @@ https://dr-emann.github.io/squashfs/
# Copyright & License
+In short: libsquashfs.so is LGPLv3 licensed, the utility programs are GPLv3.
+
+Some 3rd party source code is included with more permissive licenses, some of
+which is actually compiled into libsquashfs. Copyright notices for those must
+be included when distributing either source or binaries of squashfs-tools-ng.
+
See [COPYING.md](COPYING.md) for copyright and licensing information.