ILok Smart Key
An ILok smart key is a small piece of hardware (AbOUT 3 inches long) that plugs into the USB port of a PC or Mac computer. It serves as a storage medium for authorizations for some software. This way, SomeOne who has purchased software can use it on any computer, provided they have installed it and have their iLok key. This eliminates the need for one person to buy multiple licenses.
The iLok key is made by PACE Anti-Piracy Inc. It is used by many software developers in the music industry. Digidesign, the creators of Pro Tools, use this anti-piracy device for all of their plug-ins.
There are two ways of putting a lisense onto an iLok key. Some hardware includes small smart card chips that you insert into the iLok at the time specified by the software, and the license gets transferred in. You can also purchase licenses online and transfer them to an iLok via iLok.com