diff --git a/src/fetchcode/package.py b/src/fetchcode/package.py
index 1b0f18d..6edde95 100644
--- a/src/fetchcode/package.py
+++ b/src/fetchcode/package.py
@@ -143,7 +143,7 @@ def get_npm_data_from_purl(purl):
         vcs_url = repository.get("url")
         download_url = dist.get("tarball")
         bug_tracking_url = bugs.get("url")
-        declared_license = license
+        declared_license = version.get("license", license)
 
         if purl.version and version_purl.version != purl.version:
             continue
diff --git a/tests/test_npm_version_license.py b/tests/test_npm_version_license.py
new file mode 100644
index 0000000..3b0e3eb
--- /dev/null
+++ b/tests/test_npm_version_license.py
@@ -0,0 +1,38 @@
+# fetchcode is a free software tool from nexB Inc. and others.
+# Visit https://github.com/aboutcode-org/fetchcode for support and download.
+
+# Copyright (c) nexB Inc. and others. All rights reserved.
+# http://nexb.com and http://aboutcode.org
+
+# This software is licensed under the Apache License version 2.0.
+
+# You may not use this software except in compliance with the License.
+# You may obtain a copy of the License at:
+# http://apache.org/licenses/LICENSE-2.0
+# Unless required by applicable law or agreed to in writing, software distributed
+# under the License is distributed on an "AS IS" BASIS, WITHOUT WARRANTIES OR
+# CONDITIONS OF ANY KIND, either express or implied. See the License for the
+# specific language governing permissions and limitations under the License.
+
+from fetchcode import package
+
+
+def test_npm_metadata_uses_release_license(monkeypatch):
+    monkeypatch.setattr(
+        package,
+        "get_response",
+        lambda url: {
+            "license": "Apache-2.0",
+            "versions": {
+                "1.0": {"version": "1.0", "license": "MIT"},
+                "2.0": {"version": "2.0", "license": "Apache-2.0"},
+                "0.5": {"version": "0.5"},
+            },
+        },
+    )
+    results = list(package.get_npm_data_from_purl("pkg:npm/example"))
+    assert {item.version: item.declared_license for item in results} == {
+        "1.0": "MIT",
+        "2.0": "Apache-2.0",
+        "0.5": "Apache-2.0",
+    }