diff --git a/LICENSE b/LICENSE
new file mode 100644
index 0000000..0c44ae7
--- /dev/null
+++ b/LICENSE
@@ -0,0 +1,27 @@
+Copyright (c) Isaac Z. Schlueter ("Author")
+All rights reserved.
+
+The BSD License
+
+Redistribution and use in source and binary forms, with or without
+modification, are permitted provided that the following conditions
+are met:
+
+1. Redistributions of source code must retain the above copyright
+   notice, this list of conditions and the following disclaimer.
+
+2. Redistributions in binary form must reproduce the above copyright
+   notice, this list of conditions and the following disclaimer in the
+   documentation and/or other materials provided with the distribution.
+
+THIS SOFTWARE IS PROVIDED BY THE AUTHOR AND CONTRIBUTORS ``AS IS'' AND
+ANY EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, THE
+IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
+PURPOSE ARE DISCLAIMED.  IN NO EVENT SHALL THE AUTHOR OR CONTRIBUTORS
+BE LIABLE FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, OR
+CONSEQUENTIAL DAMAGES (INCLUDING, BUT NOT LIMITED TO, PROCUREMENT OF
+SUBSTITUTE GOODS OR SERVICES; LOSS OF USE, DATA, OR PROFITS; OR
+BUSINESS INTERRUPTION) HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY,
+WHETHER IN CONTRACT, STRICT LIABILITY, OR TORT (INCLUDING NEGLIGENCE
+OR OTHERWISE) ARISING IN ANY WAY OUT OF THE USE OF THIS SOFTWARE, EVEN
+IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
diff --git a/nodejs-graceful-fs.spec b/nodejs-graceful-fs.spec
index 0b20e30..e4393df 100644
--- a/nodejs-graceful-fs.spec
+++ b/nodejs-graceful-fs.spec
@@ -2,12 +2,16 @@
 
 Name:       nodejs-graceful-fs
 Version:    1.2.1
-Release:    1%{?dist}
+Release:    2%{?dist}
 Summary:    'fs' module with incremental back-off on EMFILE
-License:    MIT
+# The license was previously ambiguous, but the author has now clarified that
+# it is BSD (not MIT).
+License:    BSD
 Group:      Development/Libraries
 URL:        https://github.com/isaacs/node-graceful-fs
 Source0:    http://registry.npmjs.org/graceful-fs/-/graceful-fs-%{version}.tgz
+# The LICENSE file has been updated upstream to reflect the actual license.
+Source1:    LICENSE
 BuildRoot:  %{_tmppath}/%{name}-%{version}-%{release}-root-%(%{__id_u} -n)
 BuildArch:  noarch
 
@@ -20,6 +24,8 @@ lots and lots of files.
 
 %prep
 %setup -q -n package
+rm -f LICENSE
+cp -a %{SOURCE1} .
 
 %build
 #nothing to do
@@ -41,6 +47,10 @@ rm -rf %{buildroot}
 %doc README.md LICENSE
 
 %changelog
+* Mon May 27 2013 Jamie Nguyen <jamielinux@fedoraproject.org> - 1.2.1-2
+- the LICENSE file previously contained the wrong license (MIT), but now
+  upstream have fixed it to contain the correct license (BSD) (#967442)
+
 * Sat May 25 2013 Jamie Nguyen <jamielinux@fedoraproject.org> - 1.2.1-1
 - update to upstream release 1.2.1