large number or string of letters, digits, and hyphens. When the software is being installed, or the first time it is run, the user is prompted to type in the license code. This code is then decoded back to its base serial number. This process reduces the number in complexity, and the additional information removed by this process is used to verify the authenticity of the serial number. If the user mistypes a single character in what is sometimes a very long code, the software will refuse to install and require the number to be retyped until it is correct. This activation code is generated during the packaging phase of manufacture, so that every user is receiving the same software but a different activation code. If a user performs a "casual copy" of the software for a friend, that friend must have the license code as well as the software to install it on their system. Since the software itself cannot determine that it is a copy, this is a way to beat this basic system. With the expansion of computer networking, two additional levels of software protection have evolved, "network registration" and "online registration". Network registration Software that employs this additional security keeps a copy of the actual serial number being used in the license code. When it is active, it is broadcasting this number on a clandestine channel on the local network. If the software has been installed on another computer on that same network, using the same license code, when the second copy is run it will detect its serial number in use on the network and typically will refuse to run. It may also cause the other copy of itself already in use to close. This prevents a small business from buying one copy of expensive software and installing it on several of the computers at their location, provided they are networked. Online registration The process of online registration is very similar to activation codes, but adds an additional step. Most modern companies are now not only internally networked, but are also connected to the internet. This allows the software manufacturers to add an additional check to their system during the installation process. When the user enters a valid license code, the software does not immediately install. Instead, it uses the active internet connection to contact a server being operated by the software manufacturer. The license