Software, programming code or a Web-based service designed to generate random license keys for software developers to provide licensed users as a way of protecting their software from being used illegally (aka pirated). Some software license generators can also perform additional licensing tasks such as license key delivery, management and verification.
A license key created by a license generator is a unique series of numbers and/or letters that identifies the legal user of a software application. A license key that has been created by a license generator is provided after a software user pays for the software and agrees to the conditions of use and distribution as legally specified in the software license (also known as an End-User License Agreement, or EULA). Software license keys may be verified within the software itself or, more commonly, over the Internet via an online license verification system.
A license generator also refers to software or Web services designed to generate the language in a software license that stipulates how software can be legally used and by how many users.
Also see "Is Software Ownership the Same as Licensing?" in the "Did You Know...“section of Webopedia.