Abstract: The present invention provides a system for monitoring the number and usage of licenses of an application over a network. A customer is allotted a certain number of excess licenses that are utilized on an as needed basis. Once one or more of these excess licenses are utilized, a notification is sent to the application representative of these uses. The customer is then billed for these excess licenses. If the customer does not timely pay for these excess licenses, these excess licenses are terminated. If the customer does timely pay, then a new updated license file is transmitted to the customer. The system also is able to remotely audit the customer site for unauthorized usage as well as the usage and trends of the customer. The system is able to operate automatically with no user intervention.