In this case the license is question is Apache License v2, but basically if I just include a text file with the license in the application directory, it might look like my app is licensed under that license which isn't the case.
Do you just add a little note to the top of the license to indicate that [library name] is under this license? How do I reference the library? By the url of the site or host?
I didn't find any dupes, but feel free to close with link to the dupe if one exists.
Just say "This package includes software with the following licenses:" and then list any other licenses. I'm pretty sure you don't have to list which specific piece it is (for most open source licenses anyway). All the places that I've worked for that distributed open source libraries did it like this. It clearly does not state that the work as a whole may be used under the conditions of those licenses.
Edit: Of course if any of the licenses require source distribution, then you should point to where that can be found, but that's not the case with Apache.
Yeah, include your own licence file which states the complete licence conditions for your application... and then at the bottom lists each of the open-source components, the name of the licence under which each is reproduced/used, and (for convenience) gives a URL from which each full licence document may be found.
Be careful that you are not impinging the open source licence... read through the statement of terms and conditions of each... If it's "a bit grey" seek legal advise. Copyright is a very very profitable field for feral lawers.