diff --git a/contentcuration/contentcuration/models.py b/contentcuration/contentcuration/models.py
index 3a27333b5c..2fb86ae3d9 100644
--- a/contentcuration/contentcuration/models.py
+++ b/contentcuration/contentcuration/models.py
@@ -2960,6 +2960,12 @@ class AuditedSpecialPermissionsLicense(models.Model):
     description = models.TextField(unique=True, db_index=True)
     distributable = models.BooleanField(default=False)
 
+    @classmethod
+    def mark_channel_version_as_distributable(cls, channel_version_id):
+        return cls.objects.filter(channel_versions__id=channel_version_id).update(
+            distributable=True
+        )
+
     def __str__(self):
         return (
             self.description[:100] if len(self.description) > 100 else self.description
diff --git a/contentcuration/contentcuration/tests/viewsets/test_channel.py b/contentcuration/contentcuration/tests/viewsets/test_channel.py
index b7b9c42908..247531fe8e 100644
--- a/contentcuration/contentcuration/tests/viewsets/test_channel.py
+++ b/contentcuration/contentcuration/tests/viewsets/test_channel.py
@@ -567,6 +567,12 @@ def test_process_added_to_community_library_change(
         channel.editors.add(editor_user)
         channel.save()
 
+        channel_version = ChannelVersion.objects.get(channel=channel, version=2)
+        special_license = AuditedSpecialPermissionsLicense.objects.create(
+            description="Community library special permissions"
+        )
+        channel_version.special_permissions_included.add(special_license)
+
         current_live_submission = CommunityLibrarySubmission.objects.create(
             channel=channel,
             channel_version=1,
@@ -643,6 +649,44 @@ def test_process_added_to_community_library_change(
             new_submission.status,
             community_library_submission.STATUS_LIVE,
         )
+        special_license.refresh_from_db()
+        self.assertTrue(special_license.distributable)
+
+    def test_publish_public_channel_marks_special_permissions_distributable(self):
+        user = testdata.user()
+        channel = testdata.channel()
+        channel.public = True
+        channel.editors.add(user)
+        channel.save()
+
+        special_permissions_license = models.License.objects.get(
+            license_name="Special Permissions"
+        )
+        special_license_description = "Public channel special permissions"
+        contentnode = (
+            channel.main_tree.get_descendants()
+            .exclude(kind_id=content_kinds.TOPIC)
+            .first()
+        )
+        contentnode.license = special_permissions_license
+        contentnode.license_description = special_license_description
+        contentnode.copyright_holder = "Public channel"
+        contentnode.save()
+
+        self.client.force_authenticate(user)
+        response = self.sync_changes([generate_publish_channel_event(channel.id)])
+
+        self.assertEqual(response.status_code, 200, response.content)
+        channel.refresh_from_db()
+        audited_license = AuditedSpecialPermissionsLicense.objects.get(
+            description=special_license_description
+        )
+        self.assertTrue(audited_license.distributable)
+        self.assertTrue(
+            channel.version_info.special_permissions_included.filter(
+                id=audited_license.id
+            ).exists()
+        )
 
 
 class CRUDTestCase(StudioAPITestCase):
diff --git a/contentcuration/contentcuration/utils/publish.py b/contentcuration/contentcuration/utils/publish.py
index e64ff0a3b2..9a00814dd7 100644
--- a/contentcuration/contentcuration/utils/publish.py
+++ b/contentcuration/contentcuration/utils/publish.py
@@ -1029,6 +1029,11 @@ def fill_published_fields(channel, version_notes):
         else:
             channel.version_info.special_permissions_included.clear()
 
+        if channel.public:
+            ccmodels.AuditedSpecialPermissionsLicense.mark_channel_version_as_distributable(
+                channel.version_info.id
+            )
+
     channel.save()
 
 
diff --git a/contentcuration/contentcuration/viewsets/channel.py b/contentcuration/contentcuration/viewsets/channel.py
index 4f54a1df30..82ff6e0c34 100644
--- a/contentcuration/contentcuration/viewsets/channel.py
+++ b/contentcuration/contentcuration/viewsets/channel.py
@@ -833,6 +833,14 @@ def add_to_community_library(
             countries=countries,
         )
 
+        published_version = ChannelVersion.objects.get(
+            channel_id=channel_id,
+            version=channel_version,
+        )
+        models.AuditedSpecialPermissionsLicense.mark_channel_version_as_distributable(
+            published_version.id
+        )
+
         new_live_submission = CommunityLibrarySubmission.objects.get(
             channel_id=channel_id,
             channel_version=channel_version,