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software-licensing

Note: Initially you can do step 1 only and another step later if you require more time to implement it.

Step 1. Cryptographically Signed Licenses with Asymmetric Encryption

  • Implementation:
    • Use RSA or ECC to generate a key pair (private key on your server, public key embedded in the software).
    • License files include user-specific data (user ID, expiration date, subscription tier) signed with the private key.
    • The software validates the signature using the public key and checks the expiration date locally.
  • Security: Tamper-proof licenses; modifications invalidate the signature.
  • Efficiency: Offline validation reduces server load, but periodic online checks ensure subscription status is current.

Step 2. Hardware-Based Binding (Fingerprinting)

  • Implementation:
    • Generate a hardware fingerprint using unique identifiers (e.g., MAC address, TPM, disk serial number).
    • Store the fingerprint in the license and validate it during startup.
    • Allow limited hardware changes (e.g., 3 transfers) via a self-service portal.
  • Security: Prevents license sharing across devices.
  • Efficiency: Transparent to users unless hardware changes occur; integrate with activation for seamless transfers.

Best Practices for Enhanced Security:

  • Code Protection: Obfuscate code and use anti-debugging tools to deter reverse engineering.
  • Multi-Factor Authentication (MFA): Add an extra layer for user logins.
  • Fail-Safe Design: Ensure the software degrades gracefully (e.g., limited functionality) if validation fails, avoiding abrupt denials.
  • Audit Trails: Log license validations and user actions for anomaly detection.

Example Workflow: In a nutshell (signed licenses + hardware binding + online checks)

  • User purchases a subscription → Server generates a license file signed with the private key, including hardware ID and expiry.
  • Software validates the signature and hardware on startup, then checks the server periodically.
  • For renewals, the server issues a new signed license; for cancellations, the API blocks access.

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