Abstract: This invention relates to a licensing identification and management system and a coding method of an anti-counterfeit label. One embodiment discloses utilizing a license code producing device to produce a license key and a royalty key, wherein the license key includes a license number and a license code, and the royalty key includes a royalty number and a royalty code. The method further includes separating and reassembling the license key and the royalty key to generate a bar code by a bar code generating device, and saving the bar code into an audit database. The method also includes utilizing a bar code printing device for generating an anti-counterfeit label according to the bar code and attaching the anti-counterfeit label to a product. Therefore, according to a comparison between that particular bar code and that stored in the audit database the product could be identified as a licensed product.