--- a/COPYING
+++ b/COPYING
@@ -1,7 +1,17 @@
-$Id: COPYING,v 1.2 2004-09-15 15:59:43 karl Exp $
+$Id: COPYING,v 1.3 2006-10-26 16:20:28 eggert Exp $
 The files in here are mostly copyright (C) Free Software Foundation, and
 are under assorted licenses.  Mostly, but not entirely, GPL.
 
+Many modules are provided dual-license, either GPL or LGPL at your
+option.  The headers of files in the lib directory (e.g., lib/error.c)
+state GPL for convenience, since the bulk of current gnulib users are
+GPL'd programs.  But the files in the modules directory (e.g.,
+modules/error) state the true license of each file, and when you use
+'gnulib-tool --lgpl --import <modules>', gnulib-tool either rewrites
+the files to have an LGPL header as part of copying them from gnulib
+to your project directory, or fails because the modules you requested
+were not licensed under LGPL.
+
 Some of the source files in lib/ have different licenses.  Also, the
 copy of maintain.texi in doc/ has a verbatim-copying license, and
 doc/standards.texi and make-stds.texi are GFDL.