Encrypt a file base upon a pregenerated "key" C#

Question

Hello everyone. I'm trying to determine the best course of action to implement a simple "licensing" system with a partner of mine. The concept is:

Generate an encrypted value based upon several internal hardware components. Have the customer send this value to us which we will implement into our key generator. Once we have that, we add any other restrictions on the license (user, expires, etc.). From there we generate a file which we send to the customer they can add to their installation and voila, happy people about.

I have the first part all done. My next part is trying to figure out which encryption methodology I would need to use. I already know Symmetric Encryption is pretty much the only route I can take. Most of the information I have found involves .NET already creating a key from its own internal methods.

That's a bit of background, my question is: "Which encryption method could I use which would allow me to encrypt the restrictions based upon the "id" I was given from the customer's computer?" I'm writing this in C# by the way.

Any ideas would be greatly appreciated!

Take Care!

Answer 1

I recently did something very similar to this. I used AES to generate a value based on a private key using an internal customer id or order number as the IV used to encrypt the value.

Instead of an order number you can use some form of checksum from your first step so it's not something that's stored as the IV. That way if the file is hosed or if they transfer the software to a new computer - either way will invalidate the file.

Something you might be careful of though is how closely you tie the installation/license to the hardware. You don't want to punish a legitimate user simply because they upgraded their motherboard.

Answer 2

You say you know you need symmetric encryption but you would be wrong. With symmetric encryption the code checking the license has to have access to the secret, which means if your code is reverse engineered someone can not only figure out where to remove the checks, they can generate and sell license keys that are indistinguishable from the ones you make.

Use asymmetric encryption, or a secure hash. And don't try to use the customer-specific hardware information as the key, instead prepend or append it to the other data. You're essentially creating an access control/rights/privileges list file coupled with a message authentication code to verify its source (you).