diff --git a/LICENSE b/LICENSE
index 6c322eb31..8d74f856d 100644
--- a/LICENSE
+++ b/LICENSE
@@ -1,6 +1,9 @@
 
 This sofware license is for Prog8 the compiler + associated libraries.
-The software generated by running the compiler is excluded from this.
+
+Any and all outputs generated by the compiler (intermediary
+source code and compiled binary programs) are excluded from that
+and you can do with them whatever you want.
 
 
 
diff --git a/docs/source/index.rst b/docs/source/index.rst
index b86946fbd..0793e472c 100644
--- a/docs/source/index.rst
+++ b/docs/source/index.rst
@@ -29,8 +29,12 @@ You can compile programs for various machines with this CPU:
 Prog8 is copyright © Irmen de Jong (irmen@razorvine.net | http://www.razorvine.net).
 The project is on github: https://github.com/irmen/prog8.git
 
-
-This software is licensed under the GNU GPL 3.0, see https://www.gnu.org/licenses/gpl.html
+**License:**
+The compiler itself and included libraries are free to use, but licensed under the GNU GPL 3.0, as written here https://www.gnu.org/licenses/gpl.html
+Any and all *outputs, generated by the compiler* (intermediary codes and compiled binary programs) are excluded from that and you
+can do with those whatever you want.
+This means, for instance, that you can freely use Prog8 to create commercial software but you can only sell/redistribute *the actual resulting program*.
+The *compiler itself* or any derivative made from it has to adhere to the GNU GPL 3.0 free open-source license linked above.
 
 
 .. image:: _static/cube3d.png