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License4J Auto License Generation and Activation Server is a web application which handles auto license generation and activation requests. License4J License Manager GUI tool stores products, templates, and licenses in a defined database server. When a database server other than local embedded database is selected in options, license activation features and product auto license generation settings are enabled. When an auto license generation request is sent to License4J Auto License Generation and Activation Server, it searches for requested product and template to generate the license. After all security checks performed, it generates the license then sends back as specified in auto license generation output settings for the product. License4J Runtime Library has autoActivate method which sends activation request to defined License4J Auto License Generation and Activation Server or Online.License4J system. When an activation request is obtained, requested license is searched in database and if found, allowed activation limit is checked and if activation is allowed, server sends back the activated license text or activation code. If same computer tries to activate license second time, due to e.g. re-installation of software, activation server returns the same license previously activated if hardware ID matches. Therefore when hardware ID does not change re-activation attempts always return the first activation. Since License4J Auto License Generation and Activation Server is a web application, it can run on load-balance or fail-over cluster environments.