diff --git a/railties/CHANGELOG b/railties/CHANGELOG
index ed6a4c56bb..3aa84433cb 100644
--- a/railties/CHANGELOG
+++ b/railties/CHANGELOG
@@ -1,5 +1,7 @@
 *SVN*
 
+* Added assumption that all plugin creators desire to be sharing individuals and release their work under the MIT license [DHH]
+
 * Added source-annotations extractor tasks to rake [Jamis Buck]. This allows you to add FIXME, OPTIMIZE, and TODO comments to your source code that can then be extracted in concert with rake notes (shows all), rake notes:fixme, rake notes:optimize and rake notes:todo.
 
 * Added fixtures :all to test_helper.rb to assume that most people just want all their fixtures loaded all the time [DHH]
diff --git a/railties/lib/rails_generator/generators/components/plugin/plugin_generator.rb b/railties/lib/rails_generator/generators/components/plugin/plugin_generator.rb
index 915176ce18..7a619825a2 100644
--- a/railties/lib/rails_generator/generators/components/plugin/plugin_generator.rb
+++ b/railties/lib/rails_generator/generators/components/plugin/plugin_generator.rb
@@ -17,6 +17,7 @@ class PluginGenerator < Rails::Generator::NamedBase
       m.directory "#{plugin_path}/test"
 
       m.template 'README',        "#{plugin_path}/README"
+      m.template 'MIT-LICENSE',   "#{plugin_path}/MIT-LICENSE"
       m.template 'Rakefile',      "#{plugin_path}/Rakefile"
       m.template 'init.rb',       "#{plugin_path}/init.rb"
       m.template 'install.rb',    "#{plugin_path}/install.rb"
diff --git a/railties/lib/rails_generator/generators/components/plugin/templates/MIT-LICENSE b/railties/lib/rails_generator/generators/components/plugin/templates/MIT-LICENSE
new file mode 100644
index 0000000000..6600438d64
--- /dev/null
+++ b/railties/lib/rails_generator/generators/components/plugin/templates/MIT-LICENSE
@@ -0,0 +1,20 @@
+Copyright (c) 2007 [name of plugin creator]
+
+Permission is hereby granted, free of charge, to any person obtaining
+a copy of this software and associated documentation files (the
+"Software"), to deal in the Software without restriction, including
+without limitation the rights to use, copy, modify, merge, publish,
+distribute, sublicense, and/or sell copies of the Software, and to
+permit persons to whom the Software is furnished to do so, subject to
+the following conditions:
+
+The above copyright notice and this permission notice shall be
+included in all copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND,
+EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF
+MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND
+NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE
+LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION
+OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION
+WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
\ No newline at end of file
diff --git a/railties/lib/rails_generator/generators/components/plugin/templates/README b/railties/lib/rails_generator/generators/components/plugin/templates/README
index d727641340..c2e3fad36e 100644
--- a/railties/lib/rails_generator/generators/components/plugin/templates/README
+++ b/railties/lib/rails_generator/generators/components/plugin/templates/README
@@ -1,4 +1,13 @@
 <%= class_name %>
 <%= "=" * class_name.size %>
 
-Description goes here
\ No newline at end of file
+Introduction goes here.
+
+
+Example
+=======
+
+Example goes here.
+
+
+Copyright (c) 2007 [name of plugin creator], released under the MIT license
\ No newline at end of file