Abstract: The present invention allows for the electronic management and enforcement of software licenses. The present invention can be used in a network or non-network environment to facilitate product licensing and upgrades. Further, the present invention accommodates the use of compact disc read-only memory (CD ROM) product distribution. Further, the present invention can retain useful, after-market information. The present invention provides the ability to implement a license policy. Further, the license policy can be implemented or modified without requiring a new version of the associated product. The present invention provides the ability to create electronic licenses. Further, the present invention provides the ability to extract and transfer licenses from an inventory of licenses to a final distribution media. Licenses can be transferred to a reseller in batches. A reseller can extract unused licenses from these batches to generate licenses. An optional companion license can be generated.