diff --git a/moto/rds/models.py b/moto/rds/models.py
index a499b134d..77deff09d 100644
--- a/moto/rds/models.py
+++ b/moto/rds/models.py
@@ -182,7 +182,7 @@ class Database(BaseModel):
               <ReadReplicaSourceDBInstanceIdentifier>{{ database.source_db_identifier }}</ReadReplicaSourceDBInstanceIdentifier>
               {% endif %}
               <Engine>{{ database.engine }}</Engine>
-              <LicenseModel>general-public-license</LicenseModel>
+              <LicenseModel>{{ database.license_model }}</LicenseModel>
               <EngineVersion>{{ database.engine_version }}</EngineVersion>
               <DBParameterGroups>
               </DBParameterGroups>
diff --git a/moto/rds2/models.py b/moto/rds2/models.py
index 86f7bae9a..5abd2ed1b 100644
--- a/moto/rds2/models.py
+++ b/moto/rds2/models.py
@@ -89,8 +89,7 @@ class Database(BaseModel):
 
         self.preferred_backup_window = kwargs.get(
             'preferred_backup_window', '13:14-13:44')
-        self.license_model = kwargs.get(
-            'license_model', 'general-public-license')
+        self.license_model = kwargs.get('license_model', 'general-public-license')
         self.option_group_name = kwargs.get('option_group_name', None)
         self.default_option_groups = {"MySQL": "default.mysql5.6",
                                       "mysql": "default.mysql5.6",
@@ -159,7 +158,7 @@ class Database(BaseModel):
               <ReadReplicaSourceDBInstanceIdentifier>{{ database.source_db_identifier }}</ReadReplicaSourceDBInstanceIdentifier>
               {% endif %}
               <Engine>{{ database.engine }}</Engine>
-              <LicenseModel>general-public-license</LicenseModel>
+              <LicenseModel>{{ database.license_model }}</LicenseModel>
               <EngineVersion>{{ database.engine_version }}</EngineVersion>
               <OptionGroupMemberships>
               </OptionGroupMemberships>
@@ -427,7 +426,7 @@ class Snapshot(BaseModel):
               <InstanceCreateTime>{{ snapshot.created_at }}</InstanceCreateTime>
               <MasterUsername>{{ database.master_username }}</MasterUsername>
               <EngineVersion>{{ database.engine_version }}</EngineVersion>
-              <LicenseModel>general-public-license</LicenseModel>
+              <LicenseModel>{{ database.license_model }}</LicenseModel>
               <SnapshotType>manual</SnapshotType>
               {% if database.iops %}
               <Iops>{{ database.iops }}</Iops>
diff --git a/moto/rds2/responses.py b/moto/rds2/responses.py
index b26f2e347..ef02bfbf1 100644
--- a/moto/rds2/responses.py
+++ b/moto/rds2/responses.py
@@ -26,6 +26,7 @@ class RDS2Response(BaseResponse):
             "db_subnet_group_name": self._get_param("DBSubnetGroupName"),
             "engine": self._get_param("Engine"),
             "engine_version": self._get_param("EngineVersion"),
+            "license_model": self._get_param("LicenseModel"),
             "iops": self._get_int_param("Iops"),
             "kms_key_id": self._get_param("KmsKeyId"),
             "master_user_password": self._get_param('MasterUserPassword'),
diff --git a/tests/test_rds2/test_rds2.py b/tests/test_rds2/test_rds2.py
index f869dc1ce..a50f99868 100644
--- a/tests/test_rds2/test_rds2.py
+++ b/tests/test_rds2/test_rds2.py
@@ -14,6 +14,7 @@ def test_create_database():
                                        Engine='postgres',
                                        DBName='staging-postgres',
                                        DBInstanceClass='db.m1.small',
+                                       LicenseModel='license-included',
                                        MasterUsername='root',
                                        MasterUserPassword='hunter2',
                                        Port=1234,
@@ -23,6 +24,7 @@ def test_create_database():
     database['DBInstance']['DBInstanceIdentifier'].should.equal("db-master-1")
     database['DBInstance']['AllocatedStorage'].should.equal(10)
     database['DBInstance']['DBInstanceClass'].should.equal("db.m1.small")
+    database['DBInstance']['LicenseModel'].should.equal("license-included")
     database['DBInstance']['MasterUsername'].should.equal("root")
     database['DBInstance']['DBSecurityGroups'][0][
         'DBSecurityGroupName'].should.equal('my_sg')