What is a Dongle/USB License?

A Dongle license is a license that is stored or managed within a removeable plug-in device such as a USB drive. The concept of a dongle license provides the user with a secure and transportable license, and allows the software to be installed on multiple machines but only operate on the machine in which the dongle is attached. The risk is that the dongle can be lost or stolen, typically requiring the user to purchase an entirely new license or provide proof of legitimate loss in order to acquire a replacement.