diff --git a/docs/_docs/usage/policy-compliance.md b/docs/_docs/usage/policy-compliance.md
index 6071404004..9ade41ed97 100644
--- a/docs/_docs/usage/policy-compliance.md
+++ b/docs/_docs/usage/policy-compliance.md
@@ -15,9 +15,31 @@ There are three types of policy violations:
 * Operational
 
 ## License Violation
-Policy conditions can specify zero or more SPDX license IDs as well as license groups. Dependency-Track comes with
-pre-configured groups of related licenses (e.g. Copyleft) that provide a starting point for organizations to create
-custom license policies.
+If you want to check whether the declared licenses of the components in a project are compatible with guidelines that
+exist in your organization, it is possible to add license violation conditions to your Policy.
+
+To check a rule that certain licenses are allowed, you can add those licenses to a license group, called for example
+'Allowed licenses', and create a license violation condition "License group is not 'Allowed licenses'" that reports a
+violation if any of the components are not available under licenses from the 'Allowed licenses' group.
+
+Conversely, if there are some licenses that are not allowed by your organization's rules,
+you can add them to a license group, called for example 'Forbidden licenses', and create a license violation condition
+"License group is 'Forbidden licenses'" that reports a violation if any of the components are only available under licenses
+from the 'Forbidden licenses' group.
+To forbid or exclusively allow individual licenses, license violation conditions like "License is Apache-2.0" or
+"License is not MIT" can be added as well.
+
+For components that are licensed under a combination of licenses, like dual licensing, this can be
+captured in an [SPDX expression](https://spdx.github.io/spdx-spec/v2-draft/SPDX-license-expressions/), which can be
+specified for the components. If your project includes such components, and you set up a
+"License group is 'Forbidden licenses'" violation condition, then a violation is reported only when all choices of license
+combinations allowed by the SPDX expression would lead to a license from the 'Forbidden licenses' list being used.
+For a violation condition like "License group is not 'Allowed licenses'", a violation is reported when all choices of
+license combinations according to the SPDX expression would include a license that does not appear in the
+'Allowed licenses' list.
+
+Dependency-Track comes with pre-configured groups of related licenses (e.g. Copyleft) that provide a starting point for
+organizations to create custom license policies.
 
 ## Security Violation
 Policy conditions can specify the severity of vulnerabilities. A vulnerability affecting a component can result in a