diff --git a/.gitignore b/.gitignore
index 687bde03e1fe..4f0d5860e6c4 100644
--- a/.gitignore
+++ b/.gitignore
@@ -3,6 +3,7 @@
 !/Library/
 !/CODEOFCONDUCT.md
 !/CONTRIBUTING.md
+!/LICENSE.txt
 !/README.md
 !/SUPPORTERS.md
 !/bin
diff --git a/Library/Homebrew/LICENSE b/LICENSE.txt
similarity index 100%
rename from Library/Homebrew/LICENSE
rename to LICENSE.txt
diff --git a/README.md b/README.md
index 4fcd3465bade..d77706306e1d 100644
--- a/README.md
+++ b/README.md
@@ -46,5 +46,5 @@ We accept tips through [Gittip][tip].
 [mxcl]:https://github.com/mxcl
 [formula]:https://github.com/Homebrew/homebrew/tree/master/Library/Formula/
 [braumeister]:http://braumeister.org
-[license]:https://github.com/Homebrew/homebrew/tree/master/Library/Homebrew/LICENSE
+[license]:https://github.com/Homebrew/homebrew/tree/master/LICENSE.txt
 [tip]:https://www.gittip.com/Homebrew/