diff --git a/awx/main/models/inventory.py b/awx/main/models/inventory.py
index a93a347da1..59e5e4759e 100644
--- a/awx/main/models/inventory.py
+++ b/awx/main/models/inventory.py
@@ -1224,7 +1224,7 @@ class InventoryUpdate(UnifiedJob, InventorySourceOptions):
         update_fields = kwargs.get('update_fields', [])
         if bool(('license' in self.result_stdout or 'licensed' in self.result_stdout) and
                 'exceeded' in self.result_stdout and not self.license_error) or \
-                bool('License has expired' in self.result_stdout or 'License count exceeded'):
+                bool(any(x in self.result_stdout for x in ('License has expired', 'License count exceeded'))):
             self.license_error = True
             if 'license_error' not in update_fields:
                 update_fields.append('license_error')
diff --git a/awx/main/tests/base.py b/awx/main/tests/base.py
index a7f83ace09..c33c6fa8e8 100644
--- a/awx/main/tests/base.py
+++ b/awx/main/tests/base.py
@@ -177,12 +177,12 @@ class BaseTestMixin(QueueTestMixin):
         rnd_str = '____' + str(random.randint(1, 9999999))
         return __name__ + '-generated-' + string + rnd_str
 
-    def create_test_license_file(self, instance_count=10000):
+    def create_test_license_file(self, instance_count=10000, license_date=int(time.time() + 3600)):
         writer = LicenseWriter( 
             company_name='AWX',
             contact_name='AWX Admin',
             contact_email='awx@example.com',
-            license_date=int(time.time() + 3600),
+            license_date=license_date,
             instance_count=instance_count)
         handle, license_path = tempfile.mkstemp(suffix='.json')
         os.close(handle)
diff --git a/awx/main/tests/inventory.py b/awx/main/tests/inventory.py
index ef35c407ae..62741c1678 100644
--- a/awx/main/tests/inventory.py
+++ b/awx/main/tests/inventory.py
@@ -8,6 +8,7 @@ import json
 import os
 import re
 import tempfile
+import time
 
 # Django
 from django.conf import settings
@@ -1899,6 +1900,29 @@ class InventoryUpdatesTest(BaseTransactionTest):
         with self.current_user(self.super_django_user):
             self.put(other_inv_src, other_inv_src_opts, expect=400)
 
+    def test_update_expired_license(self):
+        self.create_test_license_file(license_date=int(time.time() - 3600))
+        inventory_scripts = reverse('api:inventory_script_list')
+        new_script = dict(name="Test", description="Test Script", script=TEST_SIMPLE_INVENTORY_SCRIPT, organization=self.organization.id)
+        script_data = self.post(inventory_scripts, data=new_script, expect=201, auth=self.get_super_credentials())
+
+        custom_inv = self.organization.inventories.create(name='Custom Script Inventory')
+        custom_group = custom_inv.groups.create(name="Custom Script Group")
+        custom_inv_src = reverse('api:inventory_source_detail',
+                                 args=(custom_group.inventory_source.pk,))
+        reverse('api:inventory_source_update_view',
+                args=(custom_group.inventory_source.pk,))
+        inv_src_opts = {'source': 'custom',
+                        'source_script': script_data["id"],
+                        'source_vars': json.dumps({'HOME': 'no-place-like', 'USER': 'notme', '_': 'nope', 'INVENTORY_SOURCE_ID': -1})
+                        }
+        with self.current_user(self.super_django_user):
+            response = self.put(custom_inv_src, inv_src_opts, expect=200)
+
+        inventory_source = InventorySource.objects.get(pk=response['id'])
+        inventory_update = inventory_source.update(inventory_source=inventory_source)
+        self.assertFalse(inventory_update.license_error)
+
     def test_update_from_openstack(self):
         api_url = getattr(settings, 'TEST_OPENSTACK_HOST', '')
         api_user = getattr(settings, 'TEST_OPENSTACK_USER', '')