Software Protection, Seen by a Hacker - CodeMeter

COVER STORY
Software Protection, Seen by a Hacker
TOPICS
CodeMeter – New Technologies
AxProtector – Automatic Protection
IxProtector – Integration into the Source Code
12
FALL 2006

Contents
GLOBAL
WIBU-SYSTEMS Global
WIBU-SYSTEMS with Chancellor Merkel in China
Software Protection Days a Big Success
KNOW-HOW
Software Protection, Seen by a Hacker
PRODUCT
CodeMeter – New Technologies
AxProtector – Automatic Protection
IxProtector – Integration into the Source Code
SmartShelter|PDF and SmartShelter|Media
BILLBOARD
Briefly Presented
CASE STUDY
We have changed to CodeMeter
Steel Beasts of eSim Games
COURSES
Perfect Consulting for You…
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I N T R O
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Dear customers and partners,
The Soccer World Championship in Germany came to an end
with a fantastic 3rd place for the German team! There is tremendous
excitement in the country and worldwide acceptance for
Germany as a good host. Let’s capture and save this mood!
Our primary goal is offering you the best product on the market.
By paying attention to detail and in accordance with our slogan
“Perfection in Software Protection”, we are approaching the
perfect solution to software protection. With enthusiasm and
commitment, we work hard to support your success with our
products. We look at every option, analyze new technologies
and review new marketing models to fulfill your requirements
– right on time, with precise results. We pursue our goals
rigorously to earn your trust in our company, our people and
our products.
You may think of revenue loss as the greatest cost of piracy.
But for software companies there is another less tangible cost;
pirated copies are less reliable, problematic and tarnish both
your reputation and that of your products. Finally, software
piracy is a global problem: Copies are everywhere, but in countries
with high economic growth, the rates are the highest. In
Germany, 27% of software is copied illegally – more than one
pirated copy for every three sold legitimately. In some countries,
there is a 90% piracy rate in the software market. Even in companies
that purchase legal copies, under-licensing is the problem:
5 licenses were purchased but 20 are used. Last but not least,
there are commercial pirates – often funded by organized crime
– who sell illegal copies and create activations; and in the
process steal from users as well as developers.
Relying on legal remedies is not enough and not all technical
security methods are effective. There is a need for solutions
which are easy to integrate, offer highly flexible licensing and
sales models and guarantee the highest possible security. We
are proud of the solutions our products contribute to eradicating
global piracy.
In the current KEYnote magazine we discuss the limits of technical
protection methods and the major improvements we have
made. Enjoy!
Sincerely
Oliver Winzenried

WIBU-SYSTEMS
Global
Software protection is still a niche market. That’s
why WIBU-SYSTEMS started early to expand
international sales:
1993: Start in USA with first distributor close
to Washington DC and attending the COM-
DEX/Fall in Las Vegas.
1997: Distribution agreement with Suncarla
in Japan and attending the COMDEX/Tokyo
in 1998.
2001: Opening a sales office in Melbourne/
Australia and attending the CeBIT in Sydney.
2001: Founding of WIBU-SYSTEMS USA, Inc.
in Seattle.
2002: Start of distribution in China and attending
the CeBIT asia in Shanghai.
2003: Founding WIBU-SYSTEMS Shanghai.
2004: Attending the GITEX in Dubai.
2005: Opening of the sales office in Belgium
and The Netherlands, large investment in
China and founding of a capital company
WIBU-SYSTEMS (Shanghai) Co. Ltd. (WFOE)
as 100% child of the German AG.
2006: Opening of a sales office in England,
WIBU-SYSTEMS Ltd.
WIBU-SYSTEMS receives a big part of its revenue
from foreign countries thanks to the commitment
of our employees in the local offices and the exceptional
work of our distributors. Beyond pure
sales we also offer local support, consulting,
sample code and language localization.
This focus allows us to quickly enhance our products
and develop new ones.
G L O B A L
WIBU-SYSTEMS with Chancellor Merkel
in China
As a member of a business development delegation,
Oliver Winzenried, CEO of WIBU-SYSTEMS,
traveled with German Chancellor Angela Merkel
to China at the end of May. A central topic of
the delegation was the protection of intellectual
properties. Mr. Winzenried also presented information
on a user-friendly Digital Rights Management
(DRM) product in the German-Chinese high
technology dialog forum, which was led by the
German Economic Minister, Michael Glos.
“Solutions for the protection of digital content
are especially interesting for countries like China”,
explained the CEO of WIBU-SYSTEMS. “On the
one hand, the government is under international
pressure to fight harder against the industrial
production of illegally copied intellectual property.
On the other hand, DRM solutions bring a lot
of advantages for local software companies.”
The Business Software Alliance (BSA) explained
in a year end 2005 study, that China with ten
percent less software piracy could create as
many information technology jobs by 2009 as
the USA has in the last thirty years. The information
technology market would grow threefold.
Mr. Winzenried closed his presentation with the
fact: As the demand for WIBU products demonstrates
that the Chinese software industry has
realized the need for anti-piracy products.
The copyright topic with the focus on technical
software protection and licensing strategies
was also the theme of the next event in China:
that WIBU-SYSTEMS participated in. It was in
mid September and the company had a workshop
at CeBIT Asia in Shanghai. Prominent representatives
from industry and academic research
were getting informed about development and
the potential of the IT market in China.
Software Protection Days a Big Success
From April to July 2006 we conducted “Software Protection Days” in
Germany, Austria and Switzerland. These workshops combined product
information and basic knowledge with live hacking demonstrations.
We focused on a lot of topics: How do hackers work? How are protection
mechanisms defeated by tools found on the Internet? Which solutions
provide effective protection?
The response from more than 300 attendants was positive in every respect: “I was surprised how
easy protected software can be cracked and how safe and comparably easy CodeMeter avoids such
cracks”, said Klaus Wörner from University Gießen-Friedberg.
Ch. Krämer from IBIS GmbH in Endingen at Kaiserstuhl adds: “I liked the mix of lectures, detailed
technical background information and live demonstrations. The two presenters answered a lot of
questions, without losing the attention of about 20 to 25 people. On the other hand, the seminar
content was just right for a free event.”
The next workshop series with the topic “License Management” is currently in planning.
3

Software Protection,
Seen by a Hacker
4
“Profit is not the only motivation for a
hacker”, wrote Kris Kaspersky in his book
Hacker Disassembling Uncovered. But
that is the biggest motivation! The best
known names in the hacker scene are
very business orientated. Their motto
seems to be: “I have enough knowledge
and experience; I can make a lot of profit
with little effort.”
There are various ways to accomplish this:
Hackers offer their copied products for sale
directly through online portals. Others are
more subtle and offer their services for “undongleing”.
Either way, such web sites are
often professionally designed. Marketing is also
part of the business: On many sites, you can find
references about cracked software, and often
demonstration versions are available too.
How does a Hacker Proceed to
Remove Software Protection?
The experienced hacker uses an assortment of
tools and methods. On the top of the list are:
Memory Dumping
Emulators (dummy drivers, record-/playback
drivers and full-emulators)
A Couple Of Byte Patches (ACOB)
Example 1: Bypass the
Serial Number
Our first target is a game application, which
can be downloaded from the Internet. The basic
functions are available for free, but if the user
wants to integrate his own pictures or music
bits, he must buy the full version.
In our case, the software developer used a
simple protection scheme: The program file for
the demonstration version and the full version
is the same, but the additional paid features are
activated via a personalized serial number.
The experienced hacker foresees this and enters
a random activation code. The result is an error
message. This is the first start point. Then, the
game is loaded into a debugger, e.g. OllyDebug,
which is available for free and can be extended

y plug-ins. For example, one of the plug-ins
makes the Win32-API function IsDebuggerPresent
always return false. As a result, OllyDebug
is now hidden from most of the debugger detection
routines.
Now, the hacker must find the real location in
the game code. In our example, he sets a trigger
to the error message display. This was done by
the MessageBox API function. By setting a
breakpoint to the corresponding function code
in the user32 module and after two or three
returns, the hacker has detected the point of
interest.
With a tool like IDA pro, the game code can be
disassembled and the location can be analyzed.
In our example, the developer compares the
content in the processor registers EAX and EBX;
if identical, the license data is stored into the
registry. Otherwise, on the next jump (JNZ...),
the program jumps to the error message.
Again, the software developer supports the
hacker: In the EBX register, the wrong error
code exists, and in the EAX register, there is the
code expected by the software. The rest is easy:
Save this code, continue in the debugger and
enter the code found in the game. After that
the software is “registered” and the hacker can
use the game with all of its features. And its
not just him: By this method, any serial number
can be calculated and sold profitably.
The example looks like an easy-to-do exercise
for hackers, and for good reason: Many software
developers make it too easy for hackers.
To avoid boredom, a hacker could also crack it
this way:
1) Do a search of the error text and its references.
2) Create an ACOB patch at the location of
JNZ...; exchange by NOP; NOP.
3) Analyze the call which is executed just before
the comparison of EAX and EBX. Check
the disassembler to see if this code is frequently
referenced. Modify the called function
code (ACOB) so that a fixed value is
stored in EAX (example 0). Such a code could
be MOV EAX, 0 - RET.
Example 2: Removing of a Wrapper
In this case study, the developer has put a
wrapper around his compiled and linked software.
The integration is very easy because the
copy protection is added to the final executable
file (.exe). In the original code, the developer
has not changed anything.
How does a wrapper work? The executable file
is typically structured into several sections, aided
by the PE (Portable Executable) header, which
describes the size and the location of the sections
and the OEP (Original Entry Point). The OEP is
actually the start point of the application: After
the executable file is loaded into the memory,
its code is started here.
The wrapper then encrypts all sections (with a
few exceptions) and also adds a new section.
Next, the OEP in the new PE header will be set
to the start of this added section.
After loading the software into the memory, the
wrapper software starts first. If the correct license
is available, the wrapper decrypts the encrypted
sections and then branches to the old OEP.
Here our hacker comes on stage: Just before the
code in the OEP is executed, the entire program
resides completely unencrypted in memory.
Then, the hacker executes a memory dump. He
then copies the content of the memory, byte by
byte back to the hard disk.
Next, he stores the old OEP – where the processor
just stopped – in the PE header and
KNOW-HOW
reconstructs the Import Address Table (IAT).
The IAT tells the software how the latter communicates
with the operating system: This is
where all of the entry points into the Windows
API are stored.
For the Memory Dump, the hacker starts the
Multi Generic Dumper (mgd). This tool loads
the dump data into memory and tries to detect
the OEP automatically. If this is successful, mgd
stores the updated dump back to the hard disk.
Should mgd unexpectedly fail, the hacker uses
OllyDebug again, which supplies him or her
with additional knowledge about the application.
The option Trace real entry bytewise (very
slow!) uses an autonomous function to find the
OEP. If even this fails, the hacker can set a trigger
to the activation and deactivation of the code
memory write protection using the VirtualAlloc
Win32 API function and then sets a break-onaccess
breakpoint to the code segment.
In the second step, our hacker starts the application
and then an import reconstruction tool
like ImpREC. Then he adds the protected application,
enters the found OEP (the image base
address, usually 0x400000, must be subtracted),
and starts the IAT AutoSearch. Finally, he uses
GetImports. For most of today’s wrapper technologies,
the crack is nearly completed.
If functions are not found by ImpREC (due to
more complex copy protection), the hacker can
select them manually or use an ImpREC plug
in which finds the imports for a specific copy
protection concealment.
In the last step, the hacker starts the Fix Dump
function and an executable is created without
the wrapper. The result is an application without
copy protection.
In the next chapters, you can find out why the
hacker will fail with applications, protected by
AxProtector or IxProtector. The methods we just
explained do not work with our protection
mechanisms.
5

CodeMeter –
New Technologies
6
Software developers have many alternatives
to protect their software.
To Make or to Buy?
This is the first question which awaits an answer.
Why not develop your own copy protection system?
At first glance, it seems like the cheapest
solution because no external product must be
purchased and it seems individual enough that
no standard hack from the Internet can be used.
However, both assumptions are illusions: The
self-made copy-protection development requires
a lot of resources and even then your so called
tricky solutions can be easily cheated with tools
that are freely available on the Internet. Usually,
only one employee is involved in the copy protection
implementation. This also poses problems
when he or she leaves the company. In the end,
it is much better to concentrate on your own
company’s strengths, and purchase a software
protection solution.
Software-Based or
Hardware-Based Protection?
This is the second important question: Is a pure
software-based protection system better? It
seems cheaper at first, because no hardware
must be purchased and sent to the user. However,
the protection level is low because the
“protection hardware” that is used must be
addressed via the operating system with well
documented API functions – every hacker know
all of them. Product activation (see box at right)
provides only minimally higher protection and
it is locked to a specific PC, eliminating license
portability for the use.
Why CodeMeter?
CodeMeter unites the advantages of softwarebased
activation and hardware-based protection.
CodeMeter supplies several unique functionalities:
Flexibility
A thousand programs can be protected at once
with a single CM-Stick. Many licensing models
can be controlled by the CM-Stick without going
to the expense of creating different code for
the different license models like:
Single user licenses
Network licenses as “floating licenses” with
a limit in the maximum concurrent use within
this network.
Test licenses with specific a number to restrict
when the program starts.
Rent or leasing licenses for a specific time
with Expiration and/or Activation Date.
Pay-per-use licenses, for example payment per
clicks or by the number of executed features
Modular licenses for optional modules
Demo versions and try-before-you buy versions
Licenses in a CM-Stick are activated at user’s
site by a secure file based Field Activation or via
Internet with our SOAP based CM-Talk protocol
to a web server.
CodeMeter, users do not need to install kernel
drivers and do not need administrator rights.
Security
Patented methods for sharing a CM-Stick with
many software companies. By using your
own secret key. It’s even secure from WIBU-
SYSTEMS and we invented the system.
Variation of the encryption during runtime
and encrypted USB communication between
CM-Stick and the PC.
Protection against hardware attacks
Permanent locking of the CodeMeter hardware
after detection of cracking attempts.
Anti-Debugging-mechanisms in the protected
software
Time certificates for safe handling of activation
and expiration times.
Encryption of executable code and resources
which are only decrypted in the PC’s RAM.

Even there, the program is never completely
decrypted.
Security that has never been broken in three
advertised Hacker Contests
Special Features for Users
CM Password Manager
Steganos Safe CodeMeter Edition: File Protection
with virtual drive, the key is stored
in the CM-Stick
SecuriKey: The CM-Stick is used as an access-control
key for the PC
Up to 2 GByte of flash memory in the CM-
Stick/M variant to store access protected
files on the CM-Stick/M or to store applications
which use the CodeMeter security
features in a mobile world.
Easy Integration
Our AxProtector tool provides protection automatically
without of the need to modify any
source code. It’s easy and only takes a couple
of minutes. This tool works with 32-bit and
64-bit Windows, .NET 1.1 and 2.0, MacOS X
and Java. Many license models and individual
user messages provide the highest flexibility
available.
Our IxProtector tool combines the flexibility
source code modification with the highest antihacker
security on the market. These sophisticated
tools permit an easy integration of modular
protection with encryption of code and resources
with no need to know the complex protection
schemes in the background.
The API Guide code generator creates API sample
code for C, C++, C#, VB6, VB.NET, Delphi and
Java – code which can be easily integrated into
your application.
A single application file can be protected by
WibuKey or CodeMeter: Existing WibuKey
customers can continue to use them for their
existing users, but their new customers can gain
advantages from the CodeMeter technology.
Why is CodeMeter so
cost effective?
The startup costs are just 200 J for the complete
software, documentation, an individual
Firm Code and the first CM-Stick.
The concept of storing licenses from many software
companies for more than 1000 individual
products in a single CM-Stick makes CodeMeter
a good choice for low-cost software and is a real
alternative to software-based product activation.
Two price models provide high flexibility: The
“flat rate” with a universal license or a number
of inexpensive flexible licenses.
Activation with CodeMeter
Fully-automatic license transfer after registration.
The high protection of the application forbids
successful use without registration. No
misuse of goodwill activations.
Secure registration by public key cryptography
– from the software publisher until
to the CM-Stick at user site.
License portability. The user can install the
application on several PCs but can only use
it on the system where the correct CM-Stick
is attached.
License backup feature at the user site is a
safe warranty against loss or defect of a
CM-Stick.
A return of a license is possible without restrictions
and without safety limitations.
A license transfer from one CM-Stick to
another is possible but, only under control
of the Software publisher who can then
register the new user.
P R O D U C T
What is Product Activation?
The user installs software on his PC and usually
enters a serial number. The protected software
calculates a “finger print” of the specific PC’s
hardware and sends this, usually via the Internet,
to the software company, which calculates
a corresponding “Activation Code”. Because the
finger print is different for each PC, the activation
code can be used only with this PC.
7

AxProtector –
Automatic Protection
8
Software protected by traditional wrappers
and software based copy protection
schemes provide the hacker with his
“Grand Opening”. Why? Because the
“protected” program is completely decrypted
in the memory just before it is
started, and can usually be cracked easily
with standard tools. If the tools are not
powerful enough, the hacker can extend
the power with his own plug-ins. This is
a job for AxProtector!
AxProtector goes into action against the hacker
with the following processes:
Modification of the original code
Disguising the IAT
On Demand Encryption
The CM-Stick locks if a debugger is detected
Principally, AxProtector works like a classic
wrapper: It creates a new section, the AxEngine,
which is attached to the original application
code and all its sections are encrypted.
Additionally, AxProtector disassembles the
software to be protected and inserts jumps to
the AxEngine. This creates a firm union between
the software and wrapper.
Beyond this modification the AxProtector dis-
guises the IAT (Import Address Table) to aggravate
its reconstruction using tools like ImpREC.
The strongest weapon of the AxProtector is On-
Demand Decryption: Parts of the protected application
remain encrypted in the memory even
after the application starts. These parts are
decrypted only when actually accessed by the
application.
The attack described in the article “Software
Protection, Seen by a Hacker” does not work
with AxProtector: The hacker has to manually
analyze the software with a debugger and disassembler.
Known automatic methods fail.
With AxProtector, even if the hacker employs different
methods, he ends up banging his head
against a brick wall: AxEngine contains many

defense strategies against all typical attack
methods. Depending on the selected option,
such an attack could lead to the system locking
all of the licenses by that software publisher in
the CM-Stick. The locked licenses can only be
reactivated remotely. It depends on the discretion
of the publisher if this reactivation happens and
how frequently.
Using AxProtector
AxProtector will be integrated into an application
via an easy to use Graphical User Interface.
The perfect software protection is realized in
six steps:
1) Select the file: Which file should be protected
and where it should be saved?
2) Select the type of hardware: CodeMeter, Wibu-
Key or even both? Which license items (Firm
Code, Product/User Code) are required for the
protected application?
3) License allocation: How does the application
search the protection hardware? Is it local,
network-based or both and how should
licenses be utilized?
4) Runtime setting: How does the application
access the hardware during execution? How
frequently is a check desired? Should license
violations be displayed as warnings or stop
the program?
5) Security options: Some options are incompatible
with the software that is protected,
so most of the security options can be individually
deactivated.
6) Error messages: Should standard error message
boxes be used, or should messages be
customized? Example: “This module is not
activated. If you would like to buy it, please
click here.”
The last page of the GUI application provides
you with an overview of all selected options.
Finally you have to plug the FSB (Firm Security
Box) to your PC, click “Finish” and the software
protection is completely done!
The output window shows a summary of the
used protection scheme. All command line
options are also listed here. These can be used
optionally in a batch file or in a makefile to
integrate the software protection directly into
your automatic build process.
License Management with
AxProtector
AxProtector automatically integrates all license
forms into the software. The specific license
model depends on the programming of the CM-
Stick: All customers can receive the same
executable file, so identical CDs are always
burned – along with individually programmed
CM-Sticks.
Example: Time-restricted
Demo Version
For this option, the CM-Stick receives an Expiration
Time option. The software can be used
without restriction until the specified time. After
that it can no longer be started.
If the user wants to buy the software, the CM-
Stick can be quickly reactivated – just by deleting
the Expiration Time option. Field Activation
(Remote Programming) handles this operation
– the user never has to send back his CM-Stick
(or WIBU-BOX).
As an alternative, a Unit Counter can be used:
It does not limit the absolute time, rather the
number of executions or the total time of application
execution. Unit Counters and Expiration
Times can also be used at the same time to
supply absolute and execution-based time
restrictions.
P R O D U C T
Example: Network Licenses
If the user wants to use a software product with
a floating license in a network, it is easy to program
a license counter into the CM-Stick.
The user can plug the CM-Stick in at any PC in
his or her network and activate it via the Web-
Admin the License Server option. The License
Server is integrated as a part of the CodeMeter
Runtime Kit. The software can now be started
from any computer on the network, but limited
in quantity by the license counter.
One Hardware Type for
all Purposes
Each CM-Stick contains a simulated real-time
and can contain more than 1000 Unit and License
Counter. A simple programming operation is all
it takes to utilize many different license types
for any kind of application.
A CM-Stick can store more than 1000 licenses
from different software publishers. If a user already
has a CM-Stick, Field Activation can be
used for new licenses – no new hardware is
required.
Field Activation can be file based (with an exchange
of a Context File and a Update File) or
protocol based, using the SOAP protocol and
a web service.
9

IxProtector – Integration
into the Source Code
10
The AxProctector puts high security at
your fingertips in just minutes. In many
situations, this is the perfect software
protection. If you want even more customized
protection, then we have IxProtector.
IxProtector for Modular Protection
The IxProtector protects different modules in
an application with different licenses. This
means that there is a single file for all customers,
and the user can use the activated features
which are programmed into the CM-Stick.
Modules can be defined up to single functions
in the source.
IxProtector for Pay-per-Use
IxProtector permits the setup of Pay-per-Use individually
for different modules – they can use
a shared Unit Counter with different “cost
factors“ or use several independent Counters.
If an unrestricted module is needed, the accessed
Unit Counter can be removed from the
CM-Stick (see AxProtector). The protected file
does not require any modification.
IxProtector for More Security
The IxProtector encrypts single ranges of executable
code. The developer decides when the
code is decrypted before it is used. After use,
the code can be encrypted again. This On-Demand-Decryption
schema is very individual and
difficult to understand for a hacker.
WIBU Universal Protection Interface
The IxProtector contains the WupiEngine32.dll.
It supplies the WIBU Universal Protection Interface
(WUPI) with the IxProtector functions.

WUPI permits the access of the CodeMeter and
WibuKey hardware at same time without their
different and unique native APIs. Licenses can
be defined so they can use a CodeMeter Product
Code or a WibuKey User Code.
WupiAllocateLicense can access CodeMeter or
WibuKey licenses locally or on the network. Wupi-
FreeLicense releases it again. WupiCheckLicense
just checks if a specific License is actually available
in a CM-Stick or WIBU-BOX.
WupiDecryptCode permits the decryption of an
encrypted range of code or data. After execution
or use, the code or data can be encrypted again
with WupiEncryptCode.
WupiDecreaseUnitCounter implements the individual
count down of a Unit Counter (or WibuKey
Limit Counter).
The WupiEngine32.dll contains all functions only
as dummies. They do not execute any encryption
or decryption but always return “completed”.
These dummies allow an unencrypted application
to be loaded in a debugger and tested without
restriction.
Define a License
The developer has to define licenses which are
used to fulfill an encryption or decryption.
A license with name General, requiring a CM-
Stick with Firm Code 100225 and Product Code
295 or a WIBU-BOX with Firm Code 2194 and
User Code 478 is defined as follow:
This permits the definition of encryption options,
which are attached to Areas. Here is an example
where an area with the name Std, uses the
General license.
Last but not least, we need a definition of the
functions which define the modules to be protected
and which should be encrypted. The following
example encrypts two methods. In DrawFractal,
the first 16 bytes are encrypted, and in FillDialog
the first 32 bytes are encrypted. Both functions
use the Std area and the General license.
P R O D U C T
Finally we need a header structure which connects
all of this information:
Encrypt the Software
Now the software will be encrypted by AxProtector
(which actually also implements the
IxProtector). The IxProtector encrypts the defined
code or data ranges and the WupiEngine32.dll
dummy is replaced by the real IxEngine with
secure code and supplied by the IxProtector.
Add the Native API
Beyond WUPI, the native CodeMeter and Wibu-
Key APIs can be used also. Field Activation, for
example, can be directly integrated into the
application, and the LED at the CM-Stick can
be switched on and off.
To use the CM-API more easily, the desired API
calls can be interactively defined in the CM-API-
Guide creating easy-to-integrate native code in
all modern programming languages.
11

SmartShelter|PDF and
SmartShelter|Media
12
P R O D U C T
The SmartShelter product family has received two recent additions: SmartShelter|PDF
to protect PDF documents and SmartShelter|Media to protect video and audio files.
SmartShelter|PDF
The PDF standard permits 40-bit or 128-bit
document encryption and the setting of restrictions
to modify, copy, print, etc. But these
protection mechanisms can be defeated with
easy-to-use tools from the Internet. Better encryption
was not available until Acrobat Reader
5 and documents protected with older versions
cannot be defined as “hacker-safe”. Newer
Acrobat products support strong encryption but
if the password is lost, the document content
is lost forever.
All these obstacles are overcome with Smart-
Shelter|PDF from WIBU-SYSTEMS. First a plugin
is integrated into Acrobat or Acrobat Reader.
Passwords are no longer entered via the Adobe
software but are now supplied from the attached
CM-Stick or WIBU-BOX. The desired document
is encrypted with a 32-character random key-
word. Whoever wants to read the document
needs both the Acrobat plug-In and the CM-
Stick or the WIBU-BOX.
This protection method has a lot of advantages:
The document is protected with a strong password
which is randomly created. And each PDF
file will receive a unique password. These Long
and randomly generated character sequences
make password cracking much more difficult.
On the other hand, people who create or read
the document no longer need to bother with
password management. The passwords are
read automatically from the protection hardware
and cannot get lost.
SmartShelter|PDF is very useful for the batchoperation
in Adobe Acrobat, where a lot of PDF
files are created automatically. In the same
manner SmartShelter|PDF permits the encryption
of a bunch of files automatically.
SmartShelter|Media
After cracking the DVD encryption standard CSS
in the fall of 1999, the encryption experts had
their fun: The crack showed a serious design
flaw. The player key which is required to playback
the encrypted DVD was stored completely
in the code in the RAM and could be easily
hacked from there.
This situation is prevented by using Smart-
Shelter|Media. The decision to encrypt video
and audio files with CodeMeter technologies
guarantees that required information will never
again be completely available in memory unencrypted.
The principle is this: After specifying the license
parameters the SmartShelter|Media Archive Tool
encrypts the media data in several blocks and
stores them in the archive file. All extended
security functions of CodeMeter; like checking
an expiration time or reducing a Unit Counter
can be activated during the encryption. Archive
Files also allow the storing of several files.
The encrypted archive file can be played back
only via the SmartShelter|Media Player. This
requires a CM-Stick with the suitable license.
The player reads the file block by block and then
each block is decrypted by the CM-Stick and
played. If the CM-Stick is unplugged the playing
stops immediately. Therefore at no time is the
media data completely unencrypted in memory
where a hacker could start an attack.
SmartShelter|Media supports the common audio
and video formats, including MP3, WAV, MPEG
and AVI. Videos can be played back in the full
screen version.

Briefly Presented
New CodeMeter WebAdmin
The CodeMeter WebAdmin has received a new design in version 3. Settings are now easily chosen
and license and user data is clearly displayed. Useful for developers and system administrators and
also for end users who use CodeMeter-licensed software!
Patents for CodeMeter
The first patent “Procedure for the protection of
computer software and/or computer-readable
data as well as protective equipment” was
granted in Europe in 2005. Patents were granted
in Japan in the beginning of 2006. In September
of this year patents were also granted in the
USA. Important further
patent applications are
pending worldwide.
WibuKey Microsoft-Certified
The WibuKey Driver now qualifies for Microsoft’s
prestigious Windows Logo Program. USB style
WIBU-BOXes now qualify under WHQL
certification. Knowledgeable users
understand these certifications and
trust hardware that earns them.
CodeMeter Software 3.10 available
Many enhancements are part of CodeMeter Software
version 3.10: Improved detection of the
CM-Stick, 64-bit support, protection for Java applications
and much more. The automatic .NET protection
is redesigned at the moment and will be
available in the next product version release.
Easier update of CM-Sticks per file
To create a license or to update items, it is no
longer a requirement that the CM-Stick be at the
licensor site. This can also happen at the user
site with CM-Talk via the Internet or by sending
a WibuCmRaU update file. In the past the user
always had to create a new WibuCmRaC context
file before each modification. In the new system
the licensor can create the new WibuCmRaM file
which describes the new context after the modification
at user site and can be used to create the
next WibuCmRamU update file. This significantly
simplifies the repeated update of software.
CM-Card now available
The CM-Card, product number 1020-01, combines
the WIBU-BOX/+, a CM-Stick and 256
MByte flash memory in a single CardBus card
which can be used in all modern notebooks. The
CM-Card is RoHS compliant and replaces the
WIBU-BOX/M. It will be available in larger quantities
in 4th quarter of 2006.
BILLBOARD
CM-Stick/M also with 2 GB memory
The CM-Stick/M 2 GB, product number 1011-01-
105, is also coming in 4th quarter of 2006. Because
of dropping memory prices, the CM-Stick/
M 256 is available for the same price as the CM-
Stick/M 128, which is no longer in production.
eBooks in CodeMeter Portal
Electronic versions of many books by Franzis Publishing
are available as CodeMeter-protected
PDF files at www.codemeter.de. The eBooks are
much cheaper than the printed books and available
24 hours a day, 7 days a week. This is a
good example for using CodeMeter to protect
documents in the low cost market.
Fairs and Events in Fall
Germany: SYSTEMS
Hall A4, Booth 15,
October 23-27, 2006, Munich
United Kingdom: ESWC European
Shareware Conference
November 4-5, 2006, Cambridge
Germany: PRIO Conference
November 15-16, 2006, Baden-Baden
USA: SoftSummit
(www.softsummit.com),
November 17-18, 2006, Santa Clara
USA: Free Software Protection Days,
half day workshops in different locations
across the USA and Canada: Detailed
information at www.wibu.us/protdays
United Kingdom: DevWeek 2007
February 26-March 2, 2007, London
Software Protection Days are also planned
for Belgium, The Netherlands, United Kingdom
and Ireland: Between October 2006
and June 2007 there will be 30 events at
many different locations, see details at the
last page of this KEYnote magazine.
13

14
CASE STUDY
We have changed to
CodeMeter
“We decided on CodeMeter because we have
had a great experience with WibuKey for many
years. With our expansion into new markets,
we can use the flexible licensing possibilities
and the memory option of CodeMeter. The time
server functions used in combination with an
optional locking feature of CodeMeter has especially
convinced us to also ship our products
to Asian markets.”
Peter Fürle
CEO elusoft GmbH, Dettenhausen, Germany
“eSim Games selected WIBU CodeMeter, because
it is both customer-friendly and very secure
at same time. CodeMeter-protected applications
permit backups and eliminate involved and unreliable
CD-ROM checks, which are laughed at
by hackers and a disadvantage for honest customers.
We wanted to reward the honesty of our
customers. That is why we chose this solution.”
Nils Hinrichsen
CEO, eSim Games Deutschland GmbH
“After a long and detailed testing phase we decided
for CodeMeter for the software protection
of our SQL-Line. Important in this decision was
the network functionality of CodeMeter which
permits, with one dongle the control of network
licenses without further efforts. The remote programming
of CodeMeter was also an important
point. For integration decisions in our products,
not only was general support available, but Mr.
Kügler as a Delphi expert was also available to
answer all our questions – an important advantage!”
Arno Freisinger
CEO, AFS-Software GmbH & Co KG,
Bad Hersfeld, Germany
“We were searching for a very flexible solution for the world-wide
users of our traffic planning software, PTV Vision – CodeMeter
fulfills all our requirements including license management on
our site, licensing on a single PC or on a user’s network.”
Dr. Hans Hubschneider
CEO PTV AG, Karlsruhe, Germany
“We have decided to use CodeMeter to protect our investments
in the professional Samplitude and Sequoia audio software. We
are especially pleased with the many marketing options made
possible by using the CM-Stick to manage many different licensing
models”.
Tilmann Herberger
CTO, Magix AG, Dresden, Germany
“Among the many options of software licensing,
the CM-Stick fit best with our existing concept.
We were looking for a successor product of our
former hardware-based license system which
was no longer available. By its many available
standard functions, we could integrate CM-Stick
with minimal effort in our software. And last
but not least the effective and fast answers to
questions and solutions to problems was a
decisive factor for WIBU. And the decision was
no mistake!
Christof Brügger
Technical Support & Process, Alcatel SEL AG,
Stuttgart, Germany

Get the advantages of Software Protection
while playing: Simulation software
of eSim Games uses CodeMeter
eSim Games is an independent developer in
the market of “serious military games”. These
are applications, designed using methods and
technologies, which support “revealed learning
strategies”. This means the user discovers the
rules of the education subject by playfully varying
its behavior.
The market for military educational software has
a comparatively long tradition. The considerable
progress in the power of PC calculation coupled
with graphic power now permit the cost reduction
potential of Serious Games and also creates
new areas of application for simulation and
computer games.
For example, classic battle simulators for three
or four tank crews were sold 15 years ago for
several million Deutschmark. In contrast the
“Steel Beasts Professional” (“SB Pro”) provides
the same functionality for less than 5000 J per
user today – as long as the exact reproduction
of the battle field and its complete instrumentation
is not required.
With the “Personal Edition” of Steel Beasts Professional
(“SB Pro PE”) eSim is going even further:
For about 100 J anyone can buy the software
and use it on his or her private PC. So now they
Steel Beasts of
eSim Games
get very close to the price of normal computer
games.
But: Such low prices are only possible if software
piracy is out of the question. Otherwise
the revenue loss from illegal copies has to be
added into the price.
Normal copy protection for computer games
was never worthwhile in this context. Instead,
unnecessary procedures are imposed on the
customer which even threaten the integrity of
the computer system.
By using CM-Stick for “SB Pro PE” eSim Games
will intentionally set an example especially for
independent and small development companies:
Alternatives to common copy protection
is possible, the privacy of the customer is guaranteed
and everybody can learn how to use
CodeMeter quickly and easily.
Especially if CodeMeter is already available at
the customer site, the cost stays in the cost
range of traditional copy protection, but the
protection is much better. Also, the CodeMeter
portal provides a risk free digital distribution
channel which can be used at the same time
as other channels.
Moreover, CodeMeter permits very flexible
license models which are geared to individual
unique requirements. The customers of eSim
Games normally use only a limited number of
licenses for daily education. But sometimes, extensive
maneuvers are simulated.
For such requirement peaks, the game developer
offers temporary licenses: For a fraction of the
cost of a full license another potential revenue
source is available. And as free-of-charge service
offers they support the company to easily find
their profile in the market.
CodeMeter does the job for
eSim’s Steel Beasts Professional.
CASE STUDY
15

Perfect Consulting for You…
Free Software Protection Days 2006
Beginning in October 2006, WIBU-SYSTEMS USA will tour North America to help you protect your code
against illegal use and reverse engineering. Register now for one of our “Lunch & Learn” seminars and
receive a complimentary CodeMeter Developer’s Kit with 256 MB secure flash memory (worth $149). Meet
us at one of the following locations in USA and Canada:
Oct 19: San Jose, CA
Oct 20: San Francisco, CA
Oct 31: Chicago, IL
Nov 1: St. Louis, MO
Nov 2: Kansas City, KS
Nov 7: Atlanta, GA
Nov 8: Dallas, Ft Worth, TX
Nov 9: Houston, TX
Nov 15: Baltimore, MD
Secure Code seminars 2006/2007
WIBU-SYSTEMS is offering you the opportunity to attend a special seminar on the protection of your code
against illegal usage and reverse engineering. Register now for one of the 30 Secure Code seminars in Belgium,
The Netherlands, UK and Ireland and receive a complimentary CodeMeter Developer’s Kit with 256 MByte
secure flash memory, worth J 125/£ 87.
The agenda is as follows:
Registration, buffet and coffee/tea
Defend applications against code-cracking tools
CodeMeter and WIBU-BOX
Pause
Content protection and Web-authentication
Live demo of protection code
Drinks
Detailed information registration at www.wibu-systems.nl, www.wibu.be or www.wibu.co.uk.
Utrecht, NL, 31.10.2006
Edinburgh, UK, 08.11.2006
Den Haag, NL, 14.11.2006
Tonbridge, UK, 21.11.2006
Birmingham, UK, 29.11.2006
Leeds, UK, 06.12.2006
Belfast, UK, 13.12.2006
Nov 16: New York City, NT
Nov 17: Boston, MA
Nov 20: Los Angeles, CA
Nov 21: Salt Lake City, UT
Dec 6: Toronto, ON
Dec 7: Montreal, PQ
Detailed information at:
www.wibu.us/protdays
Norwich, UK, 24.01.2007
Cardiff, UK, 07.02.2007
Gent, BE, 13.02.2007
Guildford, UK, 20.02.2007
Sheffield, UK, 07.03.2007
Antwerpen, BE, 14.03.2007
Dublin, IE, 28.03.2007
Glasgow, UK, 04.04.2007
Oxford, UK, 18.04.2007
Amsterdam, NL, 25.04.2007
Hammersmith, UK, 23.05.2007
Liverpool, UK, 30.05.2007
Eindhoven, NL, 05.06.2007
London, UK, 12.06.2007
Further trainings are offered on site and at our German headquarters. See more information
at www.wibu.de/trainings.php. Training in other countries on request.
C O U R S E S
Imprint
KEYnote
12th edition, fall 2006
Publisher:
WIBU-SYSTEMS AG
Rueppurrer Strasse 52-54
76137 Karlsruhe, Germany
Phone +49 721 93172-0
Fax +49 721 93172-22
info@wibu.de
www.wibu.de
Responsible for the
Contents:
Oliver Winzenried
Editors:
Marcellus Buchheit
Nils Hinrichsen
Rüdiger Kügler
Stefan Nikolaus
Oliver Winzenried
Design und Produktion:
Art Crash
Werbeagentur GmbH
Weberstrasse 9
76133 Karlsruhe, Germany
www.artcrash.com
Letters are welcome at any
time. They are protected by
the press secret. Articles
identified by name do not
necessarily reflect the opinion
of the editors.
WIBU, CodeMeter and SmartShelter
are international trademarks of WIBU-
SYSTEMS. All other trademarks belong
to their respective holders. © 2006
WIBU-SYSTEMS. All rights reserved.