While having an online validation/verification service can provide a much better way of stopping illegitimate usage of your product, these approaches usually just punish the legal users. This just ensures that if your server goes down or you go out of business, your customers can still install your software. The validation/verification of a product-key must be completly offline. The ability to black-list keys has been made very dynamic wherein it can be done in an online/offline manor. The generated keys will have hyphens (dashes) inserted separating the key into groups of characters. This design is commonly known as a Partial Key Verification System. The basic idea behind this product-key generator is that not all of the encoding/decoding logic is included in the client-installed application binary files. I just ported this example to Java as that's what I now use everyday. This example caught my eye since pascal/Delphi was my first encounter with programming. This code has been based off of an example article found at: A simple but powerful product-key generator written in Java.
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