diff --git a/ee/app/models/software_license.rb b/ee/app/models/software_license.rb
index a74b54ce8c7a4d43faabded3a87b83d97585fe47..4e0c36fdf99b87df83f58a4bb905b372c3c97922 100644
--- a/ee/app/models/software_license.rb
+++ b/ee/app/models/software_license.rb
@@ -8,6 +8,7 @@ class SoftwareLicense < ApplicationRecord
   TransactionInProgressError = Class.new(StandardError)
   ALL_LICENSE_NAMES_CACHE_KEY = [name, 'all_license_names'].freeze
   TRANSACTION_MESSAGE = "Sub-transactions are not allowed as there is already an open transaction."
+  LICENSE_LIMIT = 1_000
 
   validates :name, presence: true, uniqueness: true
   validates :spdx_identifier, length: { maximum: 255 }
@@ -18,13 +19,9 @@ class SoftwareLicense < ApplicationRecord
   scope :spdx, -> { where.not(spdx_identifier: nil) }
   scope :unknown, -> { where(spdx_identifier: nil) }
   scope :grouped_by_name, -> { group(:name) }
-  scope :unreachable_limit, -> { limit(500) }
+  scope :unreachable_limit, -> { limit(LICENSE_LIMIT) }
 
   class << self
-    def unclassified_licenses_for(project)
-      spdx.id_not_in(project.software_licenses).ordered.unreachable_limit
-    end
-
     def all_license_names
       Rails.cache.fetch(ALL_LICENSE_NAMES_CACHE_KEY, expires_in: 7.days) do
         spdx.ordered.unreachable_limit.pluck_names
diff --git a/ee/spec/models/software_license_spec.rb b/ee/spec/models/software_license_spec.rb
index f5b748837460a0df8c7bb3257aa65217373e15cf..e85eb460b8ccafc8f05a316af73b16862e060515 100644
--- a/ee/spec/models/software_license_spec.rb
+++ b/ee/spec/models/software_license_spec.rb
@@ -74,29 +74,6 @@
     end
   end
 
-  describe '.unclassified_licenses_for' do
-    subject { described_class.unclassified_licenses_for(project) }
-
-    let_it_be(:mit_license) { create(:software_license, :mit) }
-    let_it_be(:apache_license) { create(:software_license, :apache_2_0) }
-    let_it_be(:nonstandard_license) { create(:software_license, :user_entered) }
-    let_it_be(:project) { create(:project) }
-
-    context 'when a project has not classified licenses' do
-      it 'returns each license in the SPDX catalogue ordered by name' do
-        expect(subject.to_a).to eql([apache_license, mit_license])
-      end
-    end
-
-    context 'when some of the licenses are classified' do
-      let_it_be(:mit_policy) { create(:software_license_policy, project: project, software_license: mit_license) }
-
-      it 'returns each license in the SPDX catalogue that has not been classified' do
-        expect(subject).to contain_exactly(apache_license)
-      end
-    end
-  end
-
   describe '.all_license_names' do
     subject { described_class.all_license_names }
 
@@ -113,5 +90,15 @@
 
       subject
     end
+
+    context 'when the number of spdx licenses exceeds the limit' do
+      before do
+        stub_const("#{described_class}::LICENSE_LIMIT", 1)
+      end
+
+      it 'returns  ordered list of license names from the SPDX catalogue within the limit' do
+        expect(subject.to_a).to eql([apache_license.name])
+      end
+    end
   end
 end