diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3376449e..766b68f0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,7 @@ This release contains **BREAKING** changes. Make sure to read and apply upgrade
 
 - **[Breaking]** Remove ability to abort transactions using `throw(:abort)`. Please use `raise WaterDrop::Errors::AbortTransaction`.
 - **[Breaking]** Disallow (similar to ActiveRecord) exiting transactions with `return`, `break` or `throw`.
+- **[Breaking]** License changed from MIT to LGPL with an additional commercial option. Note: there is no commercial code in this repository. The commercial license is available for companies unable to use LGPL-licensed software for legal reasons.
 - [Enhancement] Make variants fiber safe.
 - [Enhancement] In transactional mode do not return any `dispatched` messages as none will be dispatched due to rollback.
 - [Fix] Ensure, that `:dispatched` key for `#produce_many_sync` always contains delivery handles (final) and not delivery reports.
diff --git a/LICENSE b/LICENSE
new file mode 100644
index 00000000..4a7fb1fd
--- /dev/null
+++ b/LICENSE
@@ -0,0 +1,17 @@
+Copyright (c) Maciej Mensfeld
+
+WaterDrop is part of Karafka and it is an Open Source project licensed under the terms of
+the LGPLv3 license. Please see <https://github.com/karafka/karafka/blob/master/LICENSE-LGPL>
+for license text.
+
+Karafka ecosystem can also be used under commercial-friendly license, with commercial support and commercial components.
+
+All of the commercial components are present in the lib/karafka/pro and lib/karafka/web/pro
+directory of this repository and their usage requires commercial license agreement.
+
+By sending a pull request to the pro components, you are agreeing to transfer the copyright of your
+code to Maciej Mensfeld.
+
+You can find the commercial license in LICENSE-COMM <https://github.com/karafka/karafka/blob/master/LICENSE-COMM>.
+
+Please see https://karafka.io for purchasing options.
diff --git a/MIT-LICENSE b/MIT-LICENSE
deleted file mode 100644
index c9b44cb8..00000000
--- a/MIT-LICENSE
+++ /dev/null
@@ -1,18 +0,0 @@
-Permission is hereby granted, free of charge, to any person obtaining
-a copy of this software and associated documentation files (the
-"Software"), to deal in the Software without restriction, including
-without limitation the rights to use, copy, modify, merge, publish,
-distribute, sublicense, and/or sell copies of the Software, and to
-permit persons to whom the Software is furnished to do so, subject to
-the following conditions:
-
-The above copyright notice and this permission notice shall be
-included in all copies or substantial portions of the Software.
-
-THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND,
-EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF
-MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND
-NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE
-LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION
-OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION
-WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
diff --git a/waterdrop.gemspec b/waterdrop.gemspec
index 9f24e639..2f1e98db 100644
--- a/waterdrop.gemspec
+++ b/waterdrop.gemspec
@@ -14,7 +14,7 @@ Gem::Specification.new do |spec|
   spec.homepage      = 'https://karafka.io'
   spec.summary       = 'Kafka messaging made easy!'
   spec.description   = spec.summary
-  spec.license       = 'MIT'
+  spec.licenses      = %w[LGPL-3.0-only Commercial]
 
   spec.add_dependency 'karafka-core', '>= 2.4.3', '< 3.0.0'
   spec.add_dependency 'karafka-rdkafka', '>= 0.15.1'