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Strong anti-piracy solutions use robust encryption to make the software unusable until it's decrypted. Using much the same system as your bank or Amazon.com uses to protect your credit card information, anti-piracy (also called copy protection) systems require a key to decrypt the software executable, allowing it to run when loaded into a computer's memory. The key is typically stored in a secure, secret location: either on a hardware device called a dongle, or in a file on the user's hard disk.
You can learn more about protecting software from illegal copying and piracy here at http://www.wibu.us.
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