Abstract: A method of protecting computer software is provided by storing a first key in a plug-in hardware device, storing an algorithm for processing a purality of keys including the first key in software to be protected, loading the software containing the algorithm in the computer and plugging in a hardware device in a communications port of the computer. A second key, external to the software, to be protected which bears a relationship to the first key by the algorithm is loaded into the computer where processing takes place of the first and second keys in the algorithm for deriving a control key, if present, for the continued processing of the software being protected. The step of loading the second key is performed using a computer keyboard, any input/output port, a hard disk file or any other method of entry in the computer. Additional keys external to the software which bear a relationship to the first and second keys configured in the algorithm may be provided.