How does the Licenses.licx based .Net component licensing model work?

Posted by Gishu on Stack Overflow See other posts from Stack Overflow or by Gishu
Published on 2008-09-09T07:49:56Z Indexed on 2010/04/02 9:13 UTC
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licensing

I've encountered multiple third part .Net component-vendors use a licensing scheme. On an evaluation copy, the components show up with a nag-screen or watermark or some such indicator. On a licensed machine, a Licenses.licx is created - with what appears to be just the assembly full name/identifiers. This file has to be included when the client assembly is built.

How does this model work? Both from component-vendors' and users' perspective.
What is the .licx file used for? Should it be checked in? We've had a number of issues with the wrong/right .licx file being checked in and what not

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