diff --git a/NEWS b/NEWS
index 279715ee..b567c246 100644
--- a/NEWS
+++ b/NEWS
@@ -8,6 +8,7 @@ TBD
 * Prevent writing duplicate groups to metadata file
 * Disable all filesystem access in flatpak-builder --run sandbox
 * Add ability to set custom fusermount path
+* Record licence files in licences directory
 
 Changes in 1.4.6
 ================
diff --git a/src/builder-module.c b/src/builder-module.c
index ea10095a..30f960e5 100644
--- a/src/builder-module.c
+++ b/src/builder-module.c
@@ -1580,6 +1580,14 @@ static const char *default_licence_file_patterns[] = {
   NULL
 };
 
+static const char *license_dir_names[] = {
+    "LICENCES",
+    "LICENSES",
+    "licences",
+    "licenses",
+    NULL
+};
+
 static gboolean
 find_default_license_files (BuilderModule  *self,
                             GFile          *source_dir,
@@ -1624,6 +1632,43 @@ find_default_license_files (BuilderModule  *self,
       return FALSE;
     }
 
+  for (size_t i = 0; license_dir_names[i] != NULL; i++)
+    {
+      g_autoptr(GFile) license_dir = g_file_get_child (source_dir, license_dir_names[i]);
+      g_autoptr(GFileEnumerator) subdir_enum = NULL;
+      GFileInfo *next;
+      g_autoptr(GError) subdir_error = NULL;
+
+      if (g_file_query_file_type (license_dir,
+                                  G_FILE_QUERY_INFO_NOFOLLOW_SYMLINKS,
+                                  NULL) != G_FILE_TYPE_DIRECTORY)
+        continue;
+
+      subdir_enum = g_file_enumerate_children (license_dir, "standard::name,standard::type",
+                                               G_FILE_QUERY_INFO_NOFOLLOW_SYMLINKS,
+                                               NULL, NULL);
+      if (subdir_enum == NULL)
+        continue;
+
+      while ((next = g_file_enumerator_next_file (subdir_enum, NULL, &subdir_error)))
+        {
+          g_autoptr(GFileInfo) sub_info = next;
+          g_autoptr(GFile) license_file = NULL;
+
+          if (g_file_info_get_file_type (sub_info) != G_FILE_TYPE_REGULAR)
+            continue;
+
+          license_file = g_file_enumerator_get_child (subdir_enum, sub_info);
+          g_ptr_array_add (files, g_steal_pointer (&license_file));
+        }
+
+      if (subdir_error != NULL)
+        {
+          g_propagate_error (error, g_steal_pointer (&subdir_error));
+          return FALSE;
+        }
+    }
+
   return TRUE;
 }
 
@@ -2397,6 +2442,7 @@ builder_module_checksum (BuilderModule  *self,
   builder_cache_checksum_str (cache, self->buildsystem);
   builder_cache_checksum_str (cache, self->install_rule);
   builder_cache_checksum_compat_boolean (cache, self->run_tests);
+  builder_cache_checksum_compat_strv (cache, self->license_files);
 
   if (self->build_options)
     builder_options_checksum (self->build_options, cache, context);
diff --git a/tests/test-builder.sh b/tests/test-builder.sh
index 16407856..61867c70 100755
--- a/tests/test-builder.sh
+++ b/tests/test-builder.sh
@@ -69,6 +69,8 @@ cp $(dirname $0)/source2.json include1/include2/
 cp $(dirname $0)/data2 include1/include2/
 cp $(dirname $0)/data2.patch include1/include2/
 echo "MY LICENSE" > ./LICENSE
+mkdir LICENSES
+echo "MY DIR LICENSE" > ./LICENSES/CC0.txt
 
 for MANIFEST in test.json test.yaml test-rename.json test-rename-appdata.json ; do
     echo "building manifest $MANIFEST" >&2
@@ -105,6 +107,7 @@ for MANIFEST in test.json test.yaml test-rename.json test-rename-appdata.json ;
     assert_file_has_content hello_out2 '^Hello world2, from a sandbox$'
 
     assert_file_has_content appdir/files/share/licenses/org.test.Hello2/test/LICENSE '^MY LICENSE$'
+    assert_file_has_content appdir/files/share/licenses/org.test.Hello2/test/CC0.txt '^MY DIR LICENSE$'
 
     echo "ok build"
 done
diff --git a/tests/test-rename-appdata.json b/tests/test-rename-appdata.json
index 83650d8a..296440b0 100644
--- a/tests/test-rename-appdata.json
+++ b/tests/test-rename-appdata.json
@@ -77,6 +77,11 @@
                             "type": "file",
                             "path": "LICENSE"
                         },
+                        {
+                            "type": "file",
+                            "path": "LICENSES/CC0.txt",
+                            "dest": "LICENSES"
+                        },
                         {
                             "type": "script",
                             "dest-filename": "hello2.sh",
diff --git a/tests/test-rename.json b/tests/test-rename.json
index 6b171982..7e08970c 100644
--- a/tests/test-rename.json
+++ b/tests/test-rename.json
@@ -78,6 +78,11 @@
                             "type": "file",
                             "path": "LICENSE"
                         },
+                        {
+                            "type": "file",
+                            "path": "LICENSES/CC0.txt",
+                            "dest": "LICENSES"
+                        },
                         {
                             "type": "script",
                             "dest-filename": "hello2.sh",
diff --git a/tests/test.json b/tests/test.json
index 532a13d8..077f8c57 100644
--- a/tests/test.json
+++ b/tests/test.json
@@ -75,6 +75,11 @@
                             "type": "file",
                             "path": "LICENSE"
                         },
+                        {
+                            "type": "file",
+                            "path": "LICENSES/CC0.txt",
+                            "dest": "LICENSES"
+                        },
                         {
                             "type": "shell",
                             "commands": [
diff --git a/tests/test.yaml b/tests/test.yaml
index 734523c8..3b06a83f 100644
--- a/tests/test.yaml
+++ b/tests/test.yaml
@@ -36,7 +36,7 @@ modules:
         make-args: [BAR=2]
         make-install-args: [BAR=3]
         build-commands: ['echo foo > /app/out']
-        license-files: ['mytest/LICENSE']
+        license-files: ['mytest/LICENSE', 'LICENSES/CC0.txt']
         sources:
           - type: file
             path: test-configure
@@ -56,6 +56,9 @@ modules:
           - type: file
             path: LICENSE
             dest: mytest
+          - type: file
+            path: LICENSES/CC0.txt
+            dest: LICENSES
           - type: shell
             commands:
               - mkdir /app/cleanup/