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# What is Network Licensing?

The network licensing model is based on the client/server architecture, where licenses are placed on a centralized system in the subnet. On this computer, the Sentinel RMS License Manager must be running to serve the license requests from clients.

The main difference between activating software that uses a network license rather than a stand-alone license is that the license code must reside on the system where the License Manager runs. This may not necessarily be the system where client application will be used.

For network licenses, you may also be asked to provide a locking code of the system where the License Manager will run.