Activating Windows 2003 Terminal server license on end user system

Many of us face challenges while we activate the terminal servers licenses from the remote system. Recently I faced the same issue and I followed the below steps and the problem was resolved.

  1. The Terminal Services Licensing Server must be configured properly and it must be up and running fine on the same network environment. For example, we will consider this server Frank2k3 ( as a Terminal services licensing server and this server is reachable to the End user system.
  2. If the Terminal Services Licensing Server is present in a different network then we have to enable the required communication ports between two environments. For example if we have the Licensing server present in the network 192.168.150.X and the End user system present in the network 10.50.10.X then we need to enable the following ports from the End user network (10.150.10.X) to the 192.168.150.X network: TCP-135, TCP-139, TCP-445, TCP 5000-5100**.

     (The ports range of 5000-5100 can be modified to any other range of at least 100 ports and it should be above the port 1024.  I used 5000-5100).

  3. We need to add below entries in the registry (use regedit.exe tool and update the registry). Create the Key in the name of Internet under KEY_LOCAL_MACHINE\Software\Microsoft\Rpc

      Under the Internet key, add the below three values
      ”Ports” (MULTI_SZ)
      ”PortsInternetAvailable” (REG_SZ)
      ”UseInternetPorts” (REG_SZ)

  4. After update of the above entry in the End user system the new registry key appears as follows:
      Ports: REG_MULTI_SZ: 5000-5100
      PortsInternetAvailable: REG_SZ: Y
      UseInternetPorts: REG_SZ: Y
  5. Restart End user system. All applications that use RPC dynamic port allocation use ports 5000 through 5100, inclusive. In most environments, a minimum of 100 ports should be opened, because several system services rely on these RPC ports to communicate with each other.
  6. On the End user system, open up Terminal Services Configuration.  Click on Server Settings --> License server discovery mode and fill in the IP address of the Terminal Server Licensing Server (  Clicking on the Check Names button should tell you if it is working or not.  Finally click on Server Settings –> Licensing and select Per Device or Per User, to match whatever types of licenses are installed on the licensing server.  We used the Per Device license.  Everything will work now.  If any problem occurs, then check the Licensing server and it will show up in the System event log with event ID 1010.
  7. The end user system (10.50.10.X) will need to be rebooted after these changes.

The below screen shots show the registry changes: