Network Key refers to the Harddisk Key or USB Key (dongle) on a server that is accessed by the protected application remotely via the network. In addition, the Network Key contains an extra licensing property that defines the maximum number of concurrent users. In this implementation, the application is tied to a specific server or Network Key. Hence, it is called Network License.
The Network Key must be deployed with the provided application called NetKey License Server (NKLS). NKLS is a TCP/IP client-server application that enables the protected application on the client computers to access the Network Key on the server. When the application is started on a client, it connects to the NKLS. The NKLS detects the Network Key on behalf of the application. The NKLS also manages to control the number of concurrent users and allocate the network license to the application. In this case, the application can be started from any clients in the network. Hence, Network License is also called floating network license.