Dear users
Installing iClone and purchasing & installing content from Reallusion is verified with Reallusion’s DRM (content registry) system. When content is first purchased, installed and activated, that content will be verified by Reallusion via internet and will be registered for that content being matched with the Serial Number (SN) of that version of iClone that it was activated. If a user had purchased and had been using DRM protected content, and for some reason Reallusion’s server goes down; this would not be problem because the online registry system is only checked the first time content is activated inside of iClone. Therefore, the user could continue using that content without any hindrance.
As for using iClone application, at no time does iClone require a connection with Reallusion’s server, except for when contacting Reallusion for updates at iClone’s startup (but again, this is not a requirement for iClone’s operation).
Therefore, if a user had purchased iClone3 and then purchased DRM protected content, the activation process would have the registry system match that content with iClone3. If a user wishes to open that same content with iClone4, the iClone4 AP will have to check with Reallusion’s registry server once in order to activate the content in iClone4. When the content has been successfully activated in both versions of iClone, the content can be used for either version without evoking DRM Protective Watermarks.
This issue came to surface this past weekend when Reallusion’s Server Provider went down. Therefore, first time purchasers or users trying to open iClone3 content with iClone4 viewed watermarks. Again, this will not be the case after all DRM protected content has been activated at least once within all iClone versions.
The product activation is the common circumstance in industry, for more detail you can visit http://en.wikipedia.org/wiki/Product_activation for better explaination.
Thanks for all the uses to let us have the chance to clear things up. Please feel free to let us know if you got more questions.
To let people fully understand the product activation issues about AP & content, Reallusion has arranged a complete table as below.
Sincerely
Reallusion, Inc.
iClone Behavior over the Internet

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Visconti
Forum Moderator
Reallusion, Inc.
https://forum.reallusion.com