diff --git a/sql/upgrades/107.sql b/sql/upgrades/107.sql
new file mode 100644
index 00000000..1f0f9c04
--- /dev/null
+++ b/sql/upgrades/107.sql
@@ -0,0 +1,44 @@
+-- SWH DB schema upgrade
+-- from_version: 106
+-- to_version: 107
+-- description: Improve license endpoint's unknown license policy
+
+insert into dbversion(version, release, description)
+      values(107, now(), 'Work In Progress');
+
+DROP FUNCTION swh_content_fossology_license_unknown();
+
+DROP FUNCTION swh_mktemp_content_fossology_license_unknown();
+
+CREATE OR REPLACE FUNCTION swh_content_fossology_license_add(conflict_update boolean) RETURNS void
+    LANGUAGE plpgsql
+    AS $$
+begin
+    -- insert unknown licenses first
+    insert into fossology_license (name)
+    select license from tmp_content_fossology_license tmp
+    where not exists (select 1 from fossology_license where name=tmp.license)
+    on conflict(name) do nothing;
+
+    if conflict_update then
+        -- delete from content_fossology_license c
+        --   using tmp_content_fossology_license tmp, indexer_configuration i
+        --   where c.id = tmp.id and i.id=tmp.indexer_configuration_id
+        delete from content_fossology_license
+        where id in (select tmp.id
+                     from tmp_content_fossology_license tmp
+                     inner join indexer_configuration i on i.id=tmp.indexer_configuration_id);
+    end if;
+
+    insert into content_fossology_license (id, license_id, indexer_configuration_id)
+    select tcl.id,
+          (select id from fossology_license where name = tcl.license) as license,
+          indexer_configuration_id
+    from tmp_content_fossology_license tcl
+        on conflict(id, license_id, indexer_configuration_id)
+        do nothing;
+    return;
+end
+$$;
+
+COMMENT ON FUNCTION swh_content_fossology_license_add(conflict_update boolean) IS 'Add new content licenses';