I would like to know how the IP based licnse system working for a server software. Say if some one have a cpanel plugin and need to make license for it based on IP ( like rvskin, fantastico ,etc,. ),a any idea how this work .
I believe what happens is the panel "phones home" to the licensing server, which then verifies the IP that it is calling *from* with your license number, to make sure that copy running on that IP is actually licensed.
I believe that is how it works, I may be wrong though.
The plugin sends its IP to the licensing server, and the licensing server checks whether it's licensed or not.
The point is, the plugin should not be open to modification, especially the part that sends the IP and receives the response.
Basically if it is visible source or open to modification, anyone can crack the licensing system. This is why control panels use compiled code, and php systems use encoded code. They are both hard enough to modify.
If you encode the licensing part, but not the rest, it's quite possible that someone will find a way to remove the encoded part. So, encode your most important functions in the same file as the licensing file, so if anyone deletes the licensing file, they will lose most of your plugin with it.
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