Abstract: Auto-regulated Electronic License Key Mechanism utilizes personal verifiable information, such as Credit Card information, Social Security Number etc, to generate license keys such that the same information is required by the authenticating part of the said mechanism embedded in the associated software for which the license is generated. One module is implemented as a stand-alone program or with a web interface and provides license key generation for purchasing with human interaction or on the web. The other module is embedded in the installer or the software program for which license key is generated and authenticates the license key based on the personal information provided. This mechanism provides a built in barrier to illegal use of the said software due to the fact that consumers always guard their personal information.