Other Methods
Some software that implements online registration extends this with a process commonly known as "phoning home". In this case, the software, either each time it is used or at some preset interval such as monthly, makes another connection back to the registration server. It does this to check in with the server to see if the serial number it is using has been determined to be one that is being used to install in many places. Serial numbers that have been identified as "pirated" (illegally distributed) are added to a blacklist on the server, a process referred to as being "burned". Burned serial numbers cannot be used to install or activate the product. Serial number lists are available on the internet that include a large number of valid registration codes for many software titles. It is common for software manufacturers to seek out these lists and invalidate the serial numbers that appear on these lists. This discourages individuals from giving out their registration codes for fear that this code will later be invalidated, disabling the original install of the software the next time that it "phones home".
Some of the more expensive software requires the user to send personal information to the software vendor before receiving the activation code. The activation code is usually a large sequence of numbers and letters, and encodes information including the license serial number, information to ensure the code is valid, and also includes the ability to verify the personal information the user sent to the software vendor. In this way, the user's name or business name must be entered along with the registration code. The registration code will not be accepted by the software unless the user types in the business name exactly as submitted to the software vendor. The business name is usually displayed by the software on its opening banner whenever the software is used. If the customer gives away his activation code it will be useless without his business name, and anyone that uses the activation code must enter it in during the activation process, leaving the original buyer's business name on the banner of the software. This makes it very easy to "trace the traitor" and find any customers who originally gave out their activation codes. Since giving away the registration code is a violation of the license agreement, the software vendor may invalidate the user's serial number (disabling that user's software in the process) and may take legal action. This does raise privacy concerns in some areas.
Read more about this topic: Traitor Tracing
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