How to license my c# application [duplicate] - c#

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License for C# desktop application
I want to make my program lock after some days of trial use and if a user purchase a license, can use the program for some months.
I dont know a way to do this. An idea is to make a local temp key when the program is installed, and lock it after the days passed(the problem here is that user can change date and time of his computer.. the philosophy of the program is to be used online and offline, so i cant compare dates from my server to the computer).
And the other thing is, how to make a license service. I can generate lots of serial keys and then when a user pays i can give him a serial, and every time the program starts i can check if the serial is in my web service.
Am i in a good road?? Any suggestions?

If this application is written in C# and you want to write your own licencing functionality, you will first need to obfuscate the executable before it is deployed. This is to stop people reading your CIL code (stored in the .exe) with a disassembler.
To licence the software you will want to choose an encryption method. For such encryption a symmetric method is essentially equivalent to an asymmetric method (as you have to provide the key in any case). The encryption method can be chosen using
public enum EncryptionAlgorithm { Des = 1, Rc2, Rijndael, TripleDes };
for each of the methods and their details, see Wikipedia. The Rijndael encryption algorithm has been designed to replace the aging DES algorithm. Like DES, it is a block cipher. It uses 128-bit, 192-bit or 256-bit keys and is a good choice. In the following I will assume that you will not be storing the encryption key in the code (hard coded) but supply it in a separate file (a ‘product key’); so you will supply two licence files the product key to enable decryption and the encrypted licence file.
Once you have chosen an encryption method, it is common-place to come up with a hash or algorithm to work on the product key/initialisation vector (IV); you take a 128-bit key (for example) and scramble it using some method/transform. The key (that is randomly/pseudo-randomly generated for each user you deploy the software to) is then used to generate the IV.
You then use the 'random' key, the IV and the selected encryption method to encrypt some licence text (that includes licence dates).
internal ICryptoTransform GetCryptoServiceProvider(byte[] bK, byte[] iVec){ ... }
To decrypt the file using your method you essentially perform the reverse process. One thing to note about licencing, is that you should not spend too much time worrying about people cracking the software. Make it very hard using a method like the above, but don't invest too much time coming up with an ever increasingly complex methodology because if some (admittedly very talented) hacker wants to crack your code it is likely he will. Moreover, you have to assume the user will not break the law and share licence files! I cannot comment from experience on using an external company to run the licencing of your code (I have always written my own), however it is likely to be an expensive option.
I hope this is of some help.

Although it highly depends on your exact requirements, target technology (Winforms, WPF, Silverlight etc...) I would suggest using a third party licensing component such as Quick License Manager, Licensing Pro dotNet.
While rolling your own solution is going to be cheaper, the possibility of it being cracked or circumvented is much higher. To use a third party solution means you have an external team or company dedicated to keeping the licensing model secure and more reliable.
Best regards,

Related

How to secure the Software license (Algorithm) [duplicate]

I'm currently involved in developing a product (developed in C#) that'll be available for downloading and installing for free but in a very limited version. To get access to all the features the user has to pay a license fee and receive a key. That key will then be entered into the application to "unlock" the full version.
As using a license key like that is kind of usual I'm wondering :
How's that usually solved?
How can I generate the key and how can it be validated by the application?
How can I also avoid having a key getting published on the Internet and used by others that haven't paid the license (a key that basically isn't "theirs").
I guess I should also tie the key to the version of application somehow so it'll be possible to charge for new keys in feature versions.
Anything else I should think about in this scenario?
Caveat: you can't prevent users from pirating, but only make it easier for honest users to do the right thing.
Assuming you don't want to do a special build for each user, then:
Generate yourself a secret key for the product
Take the user's name
Concatentate the users name and the secret key and hash with (for example) SHA1
Unpack the SHA1 hash as an alphanumeric string. This is the individual user's "Product Key"
Within the program, do the same hash, and compare with the product key. If equal, OK.
But, I repeat: this won't prevent piracy
I have recently read that this approach is not cryptographically very sound. But this solution is already weak (as the software itself has to include the secret key somewhere), so I don't think this discovery invalidates the solution as far as it goes.
Just thought I really ought to mention this, though; if you're planning to derive something else from this, beware.
There are many ways to generate license keys, but very few of those ways are truly secure. And it's a pity, because for companies, license keys have almost the same value as real cash.
Ideally, you would want your license keys to have the following properties:
Only your company should be able to generate license keys for your products, even if someone completely reverse engineers your products (which WILL happen, I speak from experience). Obfuscating the algorithm or hiding an encryption key within your software is really out of the question if you are serious about controlling licensing. If your product is successful, someone will make a key generator in a matter of days from release.
A license key should be useable on only one computer (or at least you should be able to control this very tightly)
A license key should be short and easy to type or dictate over the phone. You don't want every customer calling the technical support because they don't understand if the key contains a "l" or a "1". Your support department would thank you for this, and you will have lower costs in this area.
So how do you solve these challenges ?
The answer is simple but technically challenging: digital signatures using public key cryptography. Your license keys should be in fact signed "documents", containing some useful data, signed with your company's private key. The signatures should be part of the license key. The product should validate the license keys with the corresponding public key. This way, even if someone has full access to your product's logic, they cannot generate license keys because they don't have the private key. A license key would look like this: BASE32(CONCAT(DATA, PRIVATE_KEY_ENCRYPTED(HASH(DATA))))
The biggest challenge here is that the classical public key algorithms have large signature sizes. RSA512 has an 1024-bit signature. You don't want your license keys to have hundreds of characters.
One of the most powerful approaches is to use elliptic curve cryptography (with careful implementations to avoid the existing patents). ECC keys are like 6 times shorter than RSA keys, for the same strength. You can further reduce the signature sizes using algorithms like the Schnorr digital signature algorithm (patent expired in 2008 - good :) )
This is achievable by product activation (Windows is a good example). Basically, for a customer with a valid license key, you need to generate some "activation data" which is a signed message embedding the computer's hardware id as the signed data. This is usually done over the internet, but only ONCE: the product sends the license key and the computer hardware id to an activation server, and the activation server sends back the signed message (which can also be made short and easy to dictate over the phone). From that moment on, the product does not check the license key at startup, but the activation data, which needs the computer to be the same in order to validate (otherwise, the DATA would be different and the digital signature would not validate). Note that the activation data checking do not require verification over the Internet: it is sufficient to verify the digital signature of the activation data with the public key already embedded in the product.
Well, just eliminate redundant characters like "1", "l", "0", "o" from your keys. Split the license key string into groups of characters.
Simple answer - No matter what scheme you use it can be cracked.
Don't punish honest customers with a system meant to prevent hackers, as hackers will crack it regardless.
A simple hashed code tied to their email or similar is probably good enough. Hardware based IDs always become an issue when people need to reinstall or update hardware.
Good thread on the issue:
http://discuss.joelonsoftware.com/default.asp?biz.5.82298.34
When generating the key, don't forget to concatenate the version and build number to the string you calculate the hash on. That way there won't be a single key that unlocks all everything you ever released.
After you find some keys or patches floating in astalavista.box.sk you'll know that you succeeded in making something popular enough that somebody bothered to crack. Rejoice!
I'm one of the developers behind the Cryptolens software licensing platform and have been working on licensing systems since the age of 14. In this answer, I have included some tips based on experience acquired over the years.
The best way of solving this is by setting up a license key server that each instance of the application will call in order to verify a license key.
Benefits of a license key server
The advantages with a license key server is that:
you can always update or block a license key with immediate effect.
each license key can be locked to certain number of machines (this helps to prevent users from publishing the license key online for others to use).
Considerations
Although verifying licenses online gives you more control over each instance of the application, internet connection is not always present (especially if you target larger enterprises), so we need another way of performing the license key verification.
The solution is to always sign the license key response from the server using a public-key cryptosystem such as RSA or ECC (possibly better if you plan to run on embedded systems). Your application should only have the public key to verify the license key response.
So in case there's no internet connection, you can use the previous license key response instead. Make sure to store both the date and the machine identifier in the response and check that it's not too old (eg. you allow users to be offline at most 30 days, etc) and that the license key response belongs to the correct device.
Note you should always check the certificate of license key response, even if you are connected to the internet), in order to ensure that it has not been changed since it left the server (this still has to be done even if your API to the license key server uses https)
Protecting secret algorithms
Most .NET applications can be reverse engineered quite easily (there is both a diassembler provided by Microsoft to get the IL code and some commercial products can even retrieve the source code in eg. C#). Of course, you can always obfuscate the code, but it's never 100% secure.
I most cases, the purpose of any software licensing solution is to help honest people being honest (i.e. that honest users who are willing to pay don't forget to pay after a trial expires, etc).
However, you may still have some code that you by no means want to leak out to the public (eg. an algorithm to predict stock prices, etc). In this case, the only way to go is to create an API endpoint that your application will call each time the method should be executed. It requires internet connection but it ensures that your secret code is never executed by the client machine.
Implementation
If you don't want to implement everything yourself, I would recommend to take a look at this tutorial (part of Cryptolens)
Besides what has already been stated....
Any use of .NET applications are inherently breakable because of the intermediate language issues. A simple disassembly of the .NET code will open your product to anyone. They can easily bypass your licensing code at that point.
You can't even use hardware values to create a key anymore. Virtual machines now allow someone to create an image of a 'licensed' machine and run it on any platform they choose.
If it's expensive software there are other solutions. If it's not, just make it difficult enough for the casual hacker. And accept the fact that there will be unlicensed copies out there eventually.
If your product is complicated, the inherent support issues will be create some protection for you.
The C# / .NET engine we use for licence key generation is now maintained as open source:
https://github.com/appsoftware/.NET-Licence-Key-Generator.
It's based on a "Partial Key Verification" system which means only a subset of the key that you use to generate the key has to be compiled into your distributable. You create the keys your self, so the licence implementation is unique to your software.
As stated above, if your code can be decompiled, it's relatively easy to circumvent most licencing systems.
I've used Crypkey in the past. It's one of many available.
You can only protect software up to a point with any licensing scheme.
I don't know how elaborate you want to get
but i believe that .net can access the hard drive serial number.
you could have the program send you that and something eles ( like user name and mac address of the nic)
you compute a code based off that and email them back the key.
they will keep them from switching machines after they have the key.
I strongly believe, that only public key cryptography based licensing system is the right approach here, because you don't have to include essential information required for license generation into your sourcecode.
In the past, I've used Treek's Licensing Library many times, because it fullfills this requirements and offers really good price. It uses the same license protection for end users and itself and noone cracked that until now. You can also find good tips on the website to avoid piracy and cracking.
The only way to do everything you asked for is to require an internet access and verification with a server. The application needs to sign in to the server with the key, and then you need to store the session details, like the IP address. This will prevent the key from being used on several different machines. This is usually not very popular with the users of the application, and unless this is a very expensive and complicated application it's not worth it.
You could just have a license key for the application, and then check client side if the key is good, but it is easy to distribute this key to other users, and with a decompiler new keys can be generated.
I've implemented internet-based one-time activation on my company's software (C# .net) that requires a license key that refers to a license stored in the server's database. The software hits the server with the key and is given license information that is then encrypted locally using an RSA key generated from some variables (a combination of CPUID and other stuff that won't change often) on the client computer and then stores it in the registry.
It requires some server-side coding, but it has worked really well for us and I was able to use the same system when we expanded to browser-based software. It also gives your sales people great info about who, where and when the software is being used. Any licensing system that is only handled locally is fully vulnerable to exploitation, especially with reflection in .NET. But, like everyone else has said, no system is wholly secure.
In my opinion, if you aren't using web-based licensing, there's no real point to protecting the software at all. With the headache that DRM can cause, it's not fair to the users who have actually paid for it to suffer.
You can use a free third party solution to handle this for you such as Quantum-Key.Net It's free and handles payments via paypal through a web sales page it creates for you, key issuing via email and locks key use to a specific computer to prevent piracy.
Your should also take care to obfuscate/encrypt your code or it can easily be reverse engineered using software such as De4dot and .NetReflector. A good free code obfuscator is ConfuserEx wich is fast and simple to use and more effective than expensive alternatives.
You should run your finished software through De4Dot and .NetReflector to reverse-engineer it and see what a cracker would see if they did the same thing and to make sure you have not left any important code exposed or undisguised.
Your software will still be crackable but for the casual cracker it may well be enough to put them off and these simple steps will also prevent your code being extracted and re-used.
https://quantum-key.net
How to use ConfuserEx?
https://github.com/0xd4d/de4dot
https://www.red-gate.com/dynamic/products/dotnet-development/reflector/download
I know this is an old question, but I referenced this when I was re-writing my licensing process for one of my applications.
After reading a lot of opinions out there and relying on past experience with license codes I came up with this process.
public static class LicenseGenerator
{
private static string validChars = "ACEFHJKMNPRSTUVWXYZ234579";
private static Random rnd = new Random(Guid.NewGuid().GetHashCode());
/// <summary>
/// Generate a license code
/// </summary>
/// <param name="length">length of each phrase</param>
/// <param name="number">number of phrases separated by a '-'</param>
/// <returns></returns>
public static string GetNewCode(int length, int number)
{
string license = string.Empty;
for (int numberOfPhrases = 0; numberOfPhrases < number; numberOfPhrases++)
{
license += getPhrase(length);
if (numberOfPhrases < number)
license += "-";
}
return license.TrimEnd('-');
}
/// <summary>
/// generate a phrase
/// </summary>
/// <param name="length">length of phrase</param>
/// <returns></returns>
private static string getPhrase(int length)
{
string phrase = string.Empty;
for (int loop = 0; loop < length; loop++)
{
phrase += validChars[rnd.Next(validChars.Length)];
}
return phrase;
}
}
You really don't want to provide a code that has similar letters; it makes for a mess when the end user goes to enter it in. Letters like 6 and G, B and 8, L, I, and 1. Of course if you do want them, you can always add them back in... The above code will generate a license like xxxx-xxxx-xxxx-xxxx using the characters in "validChars". Calling GetNewCode(4, 4) will return a code like above.
I'm using Azure functions to register then validate the code. When my app registers the code, it generates an encrypted hash with things that are unique to the install, device and/or user. That is provided to the registration function and is stored with the key in the DB in Azure.
The validate regenerates the key and provides it with the license code, IP address (which in my case will not change and if it does then it will need to be updated anyway), and the regenerated hash then the Azure function returns if the application is licensed. I do store a "temporary" key on their server that allows the app to run for a period of time without talking back up.
Of course, my app must be on the net for it to work regardless.
So, the end result is a simple key for the end user to type in and an easy process to manage the license on the backend. I can also invalidate a license if need be.
I solved it by interfacing my program with a discord server, where it checks in a specific chat if the product key entered by the user exists and is still valid. In this way to receive a product key the user would be forced to hack discord and it is very difficult.

Could I hide the encryption key of a c# exe securely (in a way that can't be decompiled in any known way), as in C/C++?

I love c# for programming applications (I consider myself intermediate with c#, and a bit less with C/C++, but am only learning, nothing real yet in the arena), and I used to like it until i discovered "anyone" who understand MSIL (not an easy task to learn neither) could decompile my code. I don’t really care about someone decompiling my code, but my utter concern is the security for my eventual program users. I know obfuscators exist, and I even know of one or two that are really good, I hear (even if they only delay a decompiling).
For example, if I want to decrypt something using c#, some where in the code the key should be, making it a danger for anyone who use my program (someone who know someone who encrypted the file using my program could decrypt it by researching on my MSIL code, finding my key). Then, the developing of massive applications that encrypt/decrypt stuff (or OpenSSL) is insane with c#, I think, for this reason.
I mean, most users won’t know what language was used to make that exe, but a bunch of people are able to program n c#, and an elite of this people can read MSIL, and a minority of this elite would like to hack what ever is possible to hack. Of those people who like to hack, some of them can do it with perverse intentions (in a value-less world where we live that shouldn’t surprise anyone).
So, if I want to make a program that download a file from the internet, someone could interfere the transmission and do some evil, even if I use OpenSSL with c#, because somewhere in the c# file is the key. I know avoiding hacking is probably impossible, but it looks like c# is a very unsecure way.
Does it happen with Java? (Java has the same “interpreting” and “decompile” structure as C#); I mean, the fact that the key is visible in Java (with some educated eye) some where in the building file? Or does Java use some C/C++ based API that makes it harder (way harder) to decompile the file where the key is and so making it hard to get the key?
Is my only option to write my program with c/c++? Because if so, my only option is C++Builder, since its a hell to even try to watch (and less to learn) MFC/OWL code; I mean: I cant hardly think of someone who could like MFC/OWL programming. In fact, I suppose Assembly could be of more interest in the today programming world.
So, here I am, wanting to find someone who could explain me better a way to store securely crypto keys for encrypting/decrypting or to use OpenSSL with c#. Or even with Java. I would like to confirm that C/C++ is the only way of really using these features with some security for decompiling reasons (as other compiled programming languages, i.e. Delphi).
If anyone knows a site where I can find precise information about the subtle reasoning I suppose I have done (specially one that shows am wrong in my analysis), please tell me. If any one can confirm my analysis, please confirm. If anyone find any hole in my analysis, again, please tell me, and where to find more information that rule me to get a better understanding of all this.
Am sorry for making this philosophical computer programming question that long.
Thank you,
McNaddy
Could I hide the encryption key of a c# exe securely (in a way that can't be decompiled in any known way), as in C/C++?
No. You can't do that in any language.
The .NET security system is designed to protect benign users from hostile code. You are trying to protect benign code from hostile users. You simply cannot do that, so don't even try. If you have a secret, do not share it with anyone.
The purpose of crypto is to leverage the secrecy of some private key into the secrecy of a text. If that is not the security problem you face, crypto is the wrong tool. Explain the security problem you actually have and someone here can help you solve it.
So, if I want to make a program that download a file from the internet, someone could interfere the transmission and do some evil, even if I use OpenSSL with c#, because somewhere in the c# file is the key.
You don't need to store a secret key in the program just to download a file safely.
If you want to ensure that the file you downloaded is authentic and hasn't been modified in transit, you use a digital signature. The private key used to make the signature doesn't have to be (and shouldn't be) distributed with the program; all the program needs is the corresponding public key, which you don't have to hide.
If you want to prevent eavesdroppers from reading the file as it's downloaded, then you need to encrypt it, but that can be done with a temporary session key generated randomly for each download; it doesn't have to be stored anywhere. If you use HTTPS for your download, it'll do this for you.
The choice you've mentioned (embed key into executable) is bad irrespective of language you choose - it is not too hard to extract data from C/C++ and slightly easier for C#/Java.
As Jordão said - you need to figure out your story of distributing key outside the binaries. You also need to figure out what you actually trying to protect and understand possible exploits. Just using encryption of some sort in an application does not make it more secure.
You should not store cryptographic keys inside assemblies; they should normally be provided from outside, e.g. from a key-store, or derived from a secret known to a user.
You can also generate a key from a password(this means the key is no more stronger than the password though). So each time the user runs the program, they are prompted for a password, and that password is then used to generate a key. Depending on your requirements you could employ this in a variety of ways.
When the user needs to access the encrypted data, the password can be provided again and this generates the key for use during that session. Once the program is closed the key is discarded(there are techniques/APIs in C# to help ensure that sensitive data is only present in memory as short a time as possible).
For example, this is essentially what many password storing programs like Keepass or Roboform do. The user can upload and download the encrypted data to and from servers. No keys are ever stores, and instead generated on demand as the user supplies their password for that session.
With a service like Dropbox, when you register with their site, they generate the private key on their server and keep a copy there. So the user's machine and client software never store the key, but the server has a copy stored. Dropbox does this so that they can decrypt user data for many purposes, such as compression, de-duplication, compliance with law enforcement, etc.

How to obfuscate string constants?

We have an application which contains sensitive information and I'm trying my best to secure it. The sensitive information includes:
The main algorithm
The keys for an encryption/decryption algorithm
I've been looking at Obfuscating the code but it doesn't seem to help much as I can still decompile it. However, my biggest concern is that the keys used for encryption of serial numbers etc are clearly visible when you decompile the code, even when it's Obfuscated.
Can anyone suggest how I can secure these strings?
I realise one of the methods might be to remove any decryption from the application itself, while this may be possible in part, there are some features which have to use encryption/decryption - mainly to save a config file and to pass an 'authorisation' token to a DLL to perform a calculation.
There are ways to do what you want, but it isn't cheap and it isn't easy.
Is it worth it?
When looking at whether to protect software, we first have to answer a number of questions:
How likely is this to happen?
What is the value to someone else of your algorithm and data?
What is the cost to them of buying a license to use your software?
What is the cost to them of replicating your algorithm and data?
What is the cost to them of reverse engineering your algorithm and data?
What is the cost to you of protecting your algorithm and data?
If these produce a significant economic imperative to protect your algorithm/data then you should look into doing it. For instance if the value of the service and cost to customers are both high, but the cost of reverse engineering your code is much lower than the cost of developing it themselves, then people may attempt it.
So, this leads on to your question
How do you secure your algorithm and data?
Discouragement
Obfuscation
The option you suggest, obfuscating the code, messes with the economics above - it tries to significantly increase the cost to them (5 above) without increasing the cost to you (6) very much. The research by the Center for Encrypted Functionalities has done some interesting research on this. The problem is that as with DVD encryption it is doomed to failure if there is enough of a differential between 3, 4 and 5 then eventually someone will do it.
Detection
Another option might be a form of Steganography, which allows you to identify who decrypted your data and started distributing it. For instance, if you have 100 different float values as part of your data, and a 1bit error in the LSB of each of those values wouldn't cause a problem with your application, encode a unique (to each customer) identifier into those bits. The problem is, if someone has access to multiple copies of your application data, it would be obvious that it differs, making it easier to identify the hidden message.
Protection
SaaS - Software as a Service
A more secure option might be to provide the critical part of your software as a service, rather than include it in your application.
Conceptually, your application would collect up all of the data required to run your algorithm, package it up as a request to a server (controlled by you) in the cloud, your service would then calculate your results and pass it back to the client, which would display it.
This keeps all of your proprietary, confidential data and algorithms within a domain that you control completely, and removes any possibility of a client extracting either.
The obvious downside is that clients are tied into your service provision, are at the mercy of your servers and their internet connection. Unfortunately many people object to SaaS for exactly these reasons. On the plus side, they are always up to date with bug fixes, and your compute cluster is likely to be higher performance than the PC they are running the user interface on.
This would be a huge step to take though, and could have a huge cost 6 above, but is one of the few ways to keep your algorithm and data completely secure.
Software Protection Dongles
Although traditional Software Protection Dongles would protect from software piracy, they wouldn't protect against algorithms and data in your code being extracted.
Newer Code Porting dongles (such as SenseLock†) appear to be able to do what you want though. With these devices, you take code out of your application and port it to the secure dongle processor. As with SaaS, your application would bundle up the data, pass it to the dongle (probably a USB device attached to your computer) and read back the results.
Unlike SaaS, data bandwidth would be unlikely to be an issue, but performance of your application may be limited by the performance of your SDP.
† This was the first example I could find with a google search.
Trusted platform
Another option, which may become viable in the future is to use a Trusted Platform Module and Trusted Execution Technology to secure critical areas of the code. Whenever a customer installs your software, they would provide you with a fingerprint of their hardware and you would provide them with a unlock key for that specific system.
This key would would then allow the code to be decrypted and executed within the trusted environment, where the encrypted code and data would be inaccessible outside of the trusted platform. If anything at all about the trusted environment changed, it would invalidate the key and that functionality would be lost.
For the customer this has the advantage that their data stays local, and they don't need to buy a new dongle to improve performance, but it has the potential to create an ongoing support requirement and the likelihood that your customers would become frustrated with the hoops they had to jump through to use software they have bought and paid for - losing you good will.
Conclusion
What you want to do is not simple or cheap. It could require a big investment in software, infrastructure or both. You need to know that it is worth the investment before you start along this road.
All efforts will be futile if someone is motivated enough to break it. No one has managed to figure this out yet, even the biggest software companies.
I'm trying my best to secure it
I'm not saying this as a scathing criticism, just you need to be aware of what your trying to achieve is currently assumed to be impossible.
Obfuscation is security through obscurity, it does have some benefit as it will deter the most incompetent of hacker attempts, but largely it is wasted effort that could perhaps be better spent in other areas of development.
In answer to your original question, you are going to run into problems with intelligent compilers, they might automatically piece together the string into the compiled application removing some of your obfuscation efforts as a compilation optimisations. It would be hard to maintain as well, so I would reconsider your risk analysis model and perhaps resign yourself to the fact it can be cracked and if it has any value probably will be.
I recently read a very simple solution to OP.
Simple declare your constants as readonly string, not const string. That simple. Apparently const variables get written to a stack area in the binary but written as plain text whereas readonly strings get added to the constructor and written as a byte array instead of text.
I.e. If you search for it, you won't find it.
That was the question, right?
Using a custom algorithm (security through obscurity?), combined with storing the key inside the application, is simply not secure.
If you are storing some kind of a password, then you can use a one-way hashing function to ensure that decrypted data is unavailable anywhere in your code.
If you need to use a symmetric encryption algorithm, use a well known and tested one, like AES-256. But the key obviously cannot be stored inside your code.
[Edit]
Since you mentioned encryption of serial numbers, I believe you a one-way hashing function (like SHA-256) would really suit your needs better.
The idea is to hash your serial numbers during build time into their hashed representations, which cannot be reversed (SHA-256 is considered to be a pretty safe algorithm, compared to, say, MD5). During run time, you only need to apply the same hash function to the user input, and compare hashed values only. This way none of the actual serial numbers are available to the attacker.
#Tom Gullen have given a proper answer.
I merely got some suggestions on how you can make it harder for the users to access your keys and algorithm.
As for the algorithm: Do not compile your algorithm at compile time, but at runtime. To be able to do this you need to specify an interface which contains the methods for the algorithm. The interface is used to run it. Then add the source code for the algorithm as an encrypted string (embedded resource). Decrypt it at runtime and use CodeDom to compile it into a .NET class.
Keys: The usual way is to store spread parts of your key in different places in the application. Store each part as byte[] instead of string to make it a bit harder to find them.
If all your users have an internet connection: Fetch the algorithm source code and the keys using SSL instead.
Note that everything will be pieced together at runtime, anyone with a bit of more knowledge can inspect/debug your application to find everything.
i dont think you can easily obfuscate string constants, so if possible, dont use them :) you can use assembly resources instead, those you can encrypt however you want.
Depends what you're trying to do but can you use asymmetric encryption? That way you only need to store public keys with no need to obfuscate them.

Protecting XML file from editing

We have around 60 MB of device configuration implemented in at least 1000 xml files.
Now we are releasing the software to the customers. But our requirement is not to allow the user to view and edit the xml configuration files. XML configuration files contains a lot of secret of the device information which can be easily hacked if it is readable.
Now we need to encrypt the xml files. Are there any recommended method to encrypt the xml file and it can be decrypted at run time?
This is a problem known from DRM applications - you want to make the data available to the user agent of your choice but not to the user operating the user agent. But, since the user agent is usually on the user's side, as Jon and Oded point out, a determined hacker will find a way to break the encryption. It's a cat and mouse game. You are trying to find a solution to exactly the same problem that people implementing DRM want to solve. Software-only user agents are easier to hack than hardware-assisted user agents, but in either case time works for the hackers. The latest development is the latter - embedding all the cryptography in hardware - like the HDMI's HDCP method (High-bandwith Digital Content protection Path) where they have essentially made the decrypted digital signal inaccessible to the user by letting it pass along black-box hardware from its point of decryption until it is made so available, but at the intended destination - TV screen. The key for HDCP to succeed however was implementing it in hardware. Most hackers have learned to deal with software. But since I would say there is 1 good hardware hacker per 100 good software hackers these days, the mouse hopes no cat will be around to catch it. Sorry for too much theory, it is essential to your problem though, I believe. If you are still willing to play the game, encrypt your XML files and make sure the decryption key is not available to potential hackers on a silver plate - i.e. obfuscate it, can't do much else.
How determined are you expecting the "hackers" to be? If all the information required to decrypt the information has to be present on the system anyway, then a determined attacker is going to be able to get at it anyway.
You can use the classes in the Cryptography namespace.
Most of the encryption classes will allow you to encrypt and decrypt streams, so are good for your purpose.
However, you will still need to hold the encryption keys somewhere, even if it is in the assembly.
As Jon points out, a determined hacker will find a way to break any encryption.
As others explained, you won't get it absolutely secure without a trusted device which stores the key and does the decryption without granting access to the key under any circumstances. Computers aren't "trusted devices"...
My employer sells such technology and if your data is really money worth, you should possibly take such a solution into account.
If an additional USB-Dongle is not acceptable (or too expensive) at least use public-key (asymmetic) cryptography (see System.Security.Cryptography).
Asymmetric cryptography has the advantage that the key used to decrypt your data can't be used to encrypt the data.
Your application has to store the decryption key and the hacker can determine it with more or less effort. He then can decrypt all your data but he can't not encrpyt the changed data again. So he can't use your application with the changed data.
If you want to prevent him from doing this, you have to obfuscate your application and use anti-debugging techniques (static and runtime). If you go this way buying an existing solution is probably cheaper.
Watch out: Hackers can see all functions in .net generated executables and dll's!
If you make a decription algorithm in your .net project like DecryptXML(string Path), it is very easy for a hacker to call this instruction. So be sure to dotfuscate your project.

How to generate and validate a software license key?

I'm currently involved in developing a product (developed in C#) that'll be available for downloading and installing for free but in a very limited version. To get access to all the features the user has to pay a license fee and receive a key. That key will then be entered into the application to "unlock" the full version.
As using a license key like that is kind of usual I'm wondering :
How's that usually solved?
How can I generate the key and how can it be validated by the application?
How can I also avoid having a key getting published on the Internet and used by others that haven't paid the license (a key that basically isn't "theirs").
I guess I should also tie the key to the version of application somehow so it'll be possible to charge for new keys in feature versions.
Anything else I should think about in this scenario?
Caveat: you can't prevent users from pirating, but only make it easier for honest users to do the right thing.
Assuming you don't want to do a special build for each user, then:
Generate yourself a secret key for the product
Take the user's name
Concatentate the users name and the secret key and hash with (for example) SHA1
Unpack the SHA1 hash as an alphanumeric string. This is the individual user's "Product Key"
Within the program, do the same hash, and compare with the product key. If equal, OK.
But, I repeat: this won't prevent piracy
I have recently read that this approach is not cryptographically very sound. But this solution is already weak (as the software itself has to include the secret key somewhere), so I don't think this discovery invalidates the solution as far as it goes.
Just thought I really ought to mention this, though; if you're planning to derive something else from this, beware.
There are many ways to generate license keys, but very few of those ways are truly secure. And it's a pity, because for companies, license keys have almost the same value as real cash.
Ideally, you would want your license keys to have the following properties:
Only your company should be able to generate license keys for your products, even if someone completely reverse engineers your products (which WILL happen, I speak from experience). Obfuscating the algorithm or hiding an encryption key within your software is really out of the question if you are serious about controlling licensing. If your product is successful, someone will make a key generator in a matter of days from release.
A license key should be useable on only one computer (or at least you should be able to control this very tightly)
A license key should be short and easy to type or dictate over the phone. You don't want every customer calling the technical support because they don't understand if the key contains a "l" or a "1". Your support department would thank you for this, and you will have lower costs in this area.
So how do you solve these challenges ?
The answer is simple but technically challenging: digital signatures using public key cryptography. Your license keys should be in fact signed "documents", containing some useful data, signed with your company's private key. The signatures should be part of the license key. The product should validate the license keys with the corresponding public key. This way, even if someone has full access to your product's logic, they cannot generate license keys because they don't have the private key. A license key would look like this: BASE32(CONCAT(DATA, PRIVATE_KEY_ENCRYPTED(HASH(DATA))))
The biggest challenge here is that the classical public key algorithms have large signature sizes. RSA512 has an 1024-bit signature. You don't want your license keys to have hundreds of characters.
One of the most powerful approaches is to use elliptic curve cryptography (with careful implementations to avoid the existing patents). ECC keys are like 6 times shorter than RSA keys, for the same strength. You can further reduce the signature sizes using algorithms like the Schnorr digital signature algorithm (patent expired in 2008 - good :) )
This is achievable by product activation (Windows is a good example). Basically, for a customer with a valid license key, you need to generate some "activation data" which is a signed message embedding the computer's hardware id as the signed data. This is usually done over the internet, but only ONCE: the product sends the license key and the computer hardware id to an activation server, and the activation server sends back the signed message (which can also be made short and easy to dictate over the phone). From that moment on, the product does not check the license key at startup, but the activation data, which needs the computer to be the same in order to validate (otherwise, the DATA would be different and the digital signature would not validate). Note that the activation data checking do not require verification over the Internet: it is sufficient to verify the digital signature of the activation data with the public key already embedded in the product.
Well, just eliminate redundant characters like "1", "l", "0", "o" from your keys. Split the license key string into groups of characters.
Simple answer - No matter what scheme you use it can be cracked.
Don't punish honest customers with a system meant to prevent hackers, as hackers will crack it regardless.
A simple hashed code tied to their email or similar is probably good enough. Hardware based IDs always become an issue when people need to reinstall or update hardware.
Good thread on the issue:
http://discuss.joelonsoftware.com/default.asp?biz.5.82298.34
When generating the key, don't forget to concatenate the version and build number to the string you calculate the hash on. That way there won't be a single key that unlocks all everything you ever released.
After you find some keys or patches floating in astalavista.box.sk you'll know that you succeeded in making something popular enough that somebody bothered to crack. Rejoice!
I'm one of the developers behind the Cryptolens software licensing platform and have been working on licensing systems since the age of 14. In this answer, I have included some tips based on experience acquired over the years.
The best way of solving this is by setting up a license key server that each instance of the application will call in order to verify a license key.
Benefits of a license key server
The advantages with a license key server is that:
you can always update or block a license key with immediate effect.
each license key can be locked to certain number of machines (this helps to prevent users from publishing the license key online for others to use).
Considerations
Although verifying licenses online gives you more control over each instance of the application, internet connection is not always present (especially if you target larger enterprises), so we need another way of performing the license key verification.
The solution is to always sign the license key response from the server using a public-key cryptosystem such as RSA or ECC (possibly better if you plan to run on embedded systems). Your application should only have the public key to verify the license key response.
So in case there's no internet connection, you can use the previous license key response instead. Make sure to store both the date and the machine identifier in the response and check that it's not too old (eg. you allow users to be offline at most 30 days, etc) and that the license key response belongs to the correct device.
Note you should always check the certificate of license key response, even if you are connected to the internet), in order to ensure that it has not been changed since it left the server (this still has to be done even if your API to the license key server uses https)
Protecting secret algorithms
Most .NET applications can be reverse engineered quite easily (there is both a diassembler provided by Microsoft to get the IL code and some commercial products can even retrieve the source code in eg. C#). Of course, you can always obfuscate the code, but it's never 100% secure.
I most cases, the purpose of any software licensing solution is to help honest people being honest (i.e. that honest users who are willing to pay don't forget to pay after a trial expires, etc).
However, you may still have some code that you by no means want to leak out to the public (eg. an algorithm to predict stock prices, etc). In this case, the only way to go is to create an API endpoint that your application will call each time the method should be executed. It requires internet connection but it ensures that your secret code is never executed by the client machine.
Implementation
If you don't want to implement everything yourself, I would recommend to take a look at this tutorial (part of Cryptolens)
Besides what has already been stated....
Any use of .NET applications are inherently breakable because of the intermediate language issues. A simple disassembly of the .NET code will open your product to anyone. They can easily bypass your licensing code at that point.
You can't even use hardware values to create a key anymore. Virtual machines now allow someone to create an image of a 'licensed' machine and run it on any platform they choose.
If it's expensive software there are other solutions. If it's not, just make it difficult enough for the casual hacker. And accept the fact that there will be unlicensed copies out there eventually.
If your product is complicated, the inherent support issues will be create some protection for you.
The C# / .NET engine we use for licence key generation is now maintained as open source:
https://github.com/appsoftware/.NET-Licence-Key-Generator.
It's based on a "Partial Key Verification" system which means only a subset of the key that you use to generate the key has to be compiled into your distributable. You create the keys your self, so the licence implementation is unique to your software.
As stated above, if your code can be decompiled, it's relatively easy to circumvent most licencing systems.
I've used Crypkey in the past. It's one of many available.
You can only protect software up to a point with any licensing scheme.
I don't know how elaborate you want to get
but i believe that .net can access the hard drive serial number.
you could have the program send you that and something eles ( like user name and mac address of the nic)
you compute a code based off that and email them back the key.
they will keep them from switching machines after they have the key.
I strongly believe, that only public key cryptography based licensing system is the right approach here, because you don't have to include essential information required for license generation into your sourcecode.
In the past, I've used Treek's Licensing Library many times, because it fullfills this requirements and offers really good price. It uses the same license protection for end users and itself and noone cracked that until now. You can also find good tips on the website to avoid piracy and cracking.
The only way to do everything you asked for is to require an internet access and verification with a server. The application needs to sign in to the server with the key, and then you need to store the session details, like the IP address. This will prevent the key from being used on several different machines. This is usually not very popular with the users of the application, and unless this is a very expensive and complicated application it's not worth it.
You could just have a license key for the application, and then check client side if the key is good, but it is easy to distribute this key to other users, and with a decompiler new keys can be generated.
I've implemented internet-based one-time activation on my company's software (C# .net) that requires a license key that refers to a license stored in the server's database. The software hits the server with the key and is given license information that is then encrypted locally using an RSA key generated from some variables (a combination of CPUID and other stuff that won't change often) on the client computer and then stores it in the registry.
It requires some server-side coding, but it has worked really well for us and I was able to use the same system when we expanded to browser-based software. It also gives your sales people great info about who, where and when the software is being used. Any licensing system that is only handled locally is fully vulnerable to exploitation, especially with reflection in .NET. But, like everyone else has said, no system is wholly secure.
In my opinion, if you aren't using web-based licensing, there's no real point to protecting the software at all. With the headache that DRM can cause, it's not fair to the users who have actually paid for it to suffer.
You can use a free third party solution to handle this for you such as Quantum-Key.Net It's free and handles payments via paypal through a web sales page it creates for you, key issuing via email and locks key use to a specific computer to prevent piracy.
Your should also take care to obfuscate/encrypt your code or it can easily be reverse engineered using software such as De4dot and .NetReflector. A good free code obfuscator is ConfuserEx wich is fast and simple to use and more effective than expensive alternatives.
You should run your finished software through De4Dot and .NetReflector to reverse-engineer it and see what a cracker would see if they did the same thing and to make sure you have not left any important code exposed or undisguised.
Your software will still be crackable but for the casual cracker it may well be enough to put them off and these simple steps will also prevent your code being extracted and re-used.
https://quantum-key.net
How to use ConfuserEx?
https://github.com/0xd4d/de4dot
https://www.red-gate.com/dynamic/products/dotnet-development/reflector/download
I know this is an old question, but I referenced this when I was re-writing my licensing process for one of my applications.
After reading a lot of opinions out there and relying on past experience with license codes I came up with this process.
public static class LicenseGenerator
{
private static string validChars = "ACEFHJKMNPRSTUVWXYZ234579";
private static Random rnd = new Random(Guid.NewGuid().GetHashCode());
/// <summary>
/// Generate a license code
/// </summary>
/// <param name="length">length of each phrase</param>
/// <param name="number">number of phrases separated by a '-'</param>
/// <returns></returns>
public static string GetNewCode(int length, int number)
{
string license = string.Empty;
for (int numberOfPhrases = 0; numberOfPhrases < number; numberOfPhrases++)
{
license += getPhrase(length);
if (numberOfPhrases < number)
license += "-";
}
return license.TrimEnd('-');
}
/// <summary>
/// generate a phrase
/// </summary>
/// <param name="length">length of phrase</param>
/// <returns></returns>
private static string getPhrase(int length)
{
string phrase = string.Empty;
for (int loop = 0; loop < length; loop++)
{
phrase += validChars[rnd.Next(validChars.Length)];
}
return phrase;
}
}
You really don't want to provide a code that has similar letters; it makes for a mess when the end user goes to enter it in. Letters like 6 and G, B and 8, L, I, and 1. Of course if you do want them, you can always add them back in... The above code will generate a license like xxxx-xxxx-xxxx-xxxx using the characters in "validChars". Calling GetNewCode(4, 4) will return a code like above.
I'm using Azure functions to register then validate the code. When my app registers the code, it generates an encrypted hash with things that are unique to the install, device and/or user. That is provided to the registration function and is stored with the key in the DB in Azure.
The validate regenerates the key and provides it with the license code, IP address (which in my case will not change and if it does then it will need to be updated anyway), and the regenerated hash then the Azure function returns if the application is licensed. I do store a "temporary" key on their server that allows the app to run for a period of time without talking back up.
Of course, my app must be on the net for it to work regardless.
So, the end result is a simple key for the end user to type in and an easy process to manage the license on the backend. I can also invalidate a license if need be.
I solved it by interfacing my program with a discord server, where it checks in a specific chat if the product key entered by the user exists and is still valid. In this way to receive a product key the user would be forced to hack discord and it is very difficult.

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