Abstract: The invention provides a software asset protection mechanism which is based on the separation of the software to be protected from the right to execute that software. Protected software can only be executed on composite computing systems in which a physically and logically secure coprocessor is associated with a host computer. The software to be protected is broken down into a protected (encrypted) portion and an (optional) unprotected or plain text portion. The software is distributed by any conventional software distribution mechanism (for example a floppy disk) including the files already identified along with an encrypted software decryption key. The coprocessor is capable of decrypting the software decryption key so it can thereafter decrypt the software, for execution purposes. However, the coprocessor will not perform these functions unless and until the user's right to execute is evidenced by presentation of a physically secure token.