diff --git a/templates/license/license.html.tmpl b/templates/license/license.html.tmpl
index e0ce8f9be..2bc88e33f 100644
--- a/templates/license/license.html.tmpl
+++ b/templates/license/license.html.tmpl
@@ -15,10 +15,47 @@
         Licensed Work: Vagrant %VERSION%. The Licensed Work is (c) %YEAR% HashiCorp, Inc.
       </li>
       <li>
-        Additional Use Grant: You may make production use of the Licensed Work,
-        provided such use does not include offering the Licensed Work
-        to third parties on a hosted or embedded basis which is
-        competitive with HashiCorp's products.
+        <p>
+          Additional Use Grant: You may make production use of the Licensed Work, provided
+          Your use does not include offering the Licensed Work to third
+          parties on a hosted or embedded basis in order to compete with
+          HashiCorp's paid version(s) of the Licensed Work. For purposes
+          of this license:
+        </p>
+        <p>
+          A "competitive offering" is a Product that is offered to third
+          parties on a paid basis, including through paid support
+          arrangements, that significantly overlaps with the capabilities
+          of HashiCorp's paid version(s) of the Licensed Work. If Your
+          Product is not a competitive offering when You first make it
+          generally available, it will not become a competitive offering
+          later due to HashiCorp releasing a new version of the Licensed
+          Work with additional capabilities. In addition, Products that
+          are not provided on a paid basis are not competitive.
+        </p>
+        <p>
+          "Product" means software that is offered to end users to manage
+          in their own environments or offered as a service on a hosted
+          basis.
+        </p>
+        <p>
+          "Embedded" means including the source code or executable code
+          from the Licensed Work in a competitive offering. "Embedded"
+          also means packaging the competitive offering in such a way
+          that the Licensed Work must be accessed or downloaded for the
+          competitive offering to operate.
+        </p>
+        <p>
+          Hosting or using the Licensed Work(s) for internal purposes
+          within an organization is not considered a competitive
+          offering. HashiCorp considers your organization to include all
+          of your affiliates under common control.
+        </p>
+        <p>
+          For binding interpretive guidance on using HashiCorp products
+          under the Business Source License, please visit our FAQ.
+          (https://www.hashicorp.com/license-faq)
+        </p>
       </li>
       <li>
         Change Date: Four years from the date the Licensed Work is published.
diff --git a/templates/license/license.rtf.tmpl b/templates/license/license.rtf.tmpl
index daac00da1..d3e87148d 100755
Binary files a/templates/license/license.rtf.tmpl and b/templates/license/license.rtf.tmpl differ
diff --git a/templates/license/license.tmpl b/templates/license/license.tmpl
index b399ab4a2..1a1cce710 100644
--- a/templates/license/license.tmpl
+++ b/templates/license/license.tmpl
@@ -5,10 +5,40 @@ Parameters
 
 Licensor:             HashiCorp, Inc.
 Licensed Work:        Vagrant %VERSION%. The Licensed Work is (c) %YEAR% HashiCorp, Inc.
-Additional Use Grant: You may make production use of the Licensed Work,
-                      provided such use does not include offering the Licensed Work
-                      to third parties on a hosted or embedded basis which is
-                      competitive with HashiCorp's products.
+Additional Use Grant: You may make production use of the Licensed Work, provided
+                      Your use does not include offering the Licensed Work to third
+                      parties on a hosted or embedded basis in order to compete with
+                      HashiCorp’s paid version(s) of the Licensed Work. For purposes
+                      of this license:
+
+                      A "competitive offering" is a Product that is offered to third
+                      parties on a paid basis, including through paid support
+                      arrangements, that significantly overlaps with the capabilities
+                      of HashiCorp's paid version(s) of the Licensed Work. If Your
+                      Product is not a competitive offering when You first make it
+                      generally available, it will not become a competitive offering
+                      later due to HashiCorp releasing a new version of the Licensed
+                      Work with additional capabilities. In addition, Products that
+                      are not provided on a paid basis are not competitive.
+
+                      "Product" means software that is offered to end users to manage
+                      in their own environments or offered as a service on a hosted
+                      basis.
+
+                      "Embedded" means including the source code or executable code
+                      from the Licensed Work in a competitive offering. "Embedded"
+                      also means packaging the competitive offering in such a way
+                      that the Licensed Work must be accessed or downloaded for the
+                      competitive offering to operate.
+
+                      Hosting or using the Licensed Work(s) for internal purposes
+                      within an organization is not considered a competitive
+                      offering. HashiCorp considers your organization to include all
+                      of your affiliates under common control.
+
+                      For binding interpretive guidance on using HashiCorp products
+                      under the Business Source License, please visit our FAQ.
+                      (https://www.hashicorp.com/license-faq)
 Change Date:          Four years from the date the Licensed Work is published.
 Change License:       MPL 2.0