A unique volume
license key (VLK) is provided to a volume
license holder. A signed file containing the VLK and the data derived from volume
license holder's submitted computing environment information is provided to the volume license holder along with the licensed
software. The license file is stored in a central location, such as on an installation
server, or locally on
client machines, in a rather large file of any type. Upon logon, the license file is read, the data authenticated and the
system is activated. If license data cannot be authenticated, a connected
system either fully functions in grace period or run in reduced functionality mode until
authentication succeeds. If the
system is disconnected, the system is functional only with disconnected features until it joins a network again. In a completely off-line installation, the license file is generated by the volume license holder using
software vendor assigned specific VLK and
software vendor provided security hardware device. The distribution methods of
software package, the VLK, and the license file can be flexible, including, but not limited to, single or
multiple media.