diff --git a/ext/libfame/README b/ext/libfame/README
new file mode 100644
index 0000000000..ad83eb6df5
--- /dev/null
+++ b/ext/libfame/README
@@ -0,0 +1,4 @@
+This plugin uses the libfame library available at:
+http://fame.sf.net
+
+libfame is available under the LGPL license
diff --git a/ext/libfame/gstfamedec.c b/ext/libfame/gstfamedec.c
index 20bcc79b04..1864487fe8 100644
--- a/ext/libfame/gstfamedec.c
+++ b/ext/libfame/gstfamedec.c
@@ -32,7 +32,7 @@
 static GstElementDetails gst_famedec_details = {
   "MPEG1 and MPEG4 video decoder using the famedec library",
   "Codec/Video/Encoder",
-  "GPL",
+  "LGPL",
   "Uses famedec to decode MPEG video streams",
   VERSION,
   "famedec: (C) 2000-2001, Vivien Chappelier\n"