Abstract: An improved system for administration of license terms for a software product on the network, having an arrangement, for tracking software product usage, with one of the computers acting as a license server. This arrangement permits the license server (i) to identify the current set of nodes that are using the software product, (ii) to handle license data concerning conditions under which usage of the software product is permitted at any given node, and (iii) to determine whether at any given time the conditions would be satisfied if a given node is added to this set of nodes. The software product may thus include instructions to interface with the license server to cause enforcement of the license terms. The improvement, in one embodiment, to the system includes a policy server database maintained on each node, containing data specifying conditions under which usage of the software product is permitted on the corresponding node.