diff --git a/README.md b/README.md
index c14974b2..15a45169 100644
--- a/README.md
+++ b/README.md
@@ -360,3 +360,9 @@ Explore upcoming features and priorities on our [Roadmap](https://roadmap.sh/r/o
 ## FAQ
 
 For answers to common questions, issues, and to see a list of recommended models, visit our [FAQ Page](FAQ.md).
+
+
+# Licensing
+**Who needs a commercial WebContainer API license?**
+
+Licensing is required for production usage of the API in a commercial, for-profit setting. (Prototypes or POCs do not require a commercial license.) If you're using the API to meet the needs of your customers, prospective customers, and/or employees, you need a license to ensure compliance with our Terms of Service. Usage of the API in violation of these terms may result in your access being revoked.