> For the complete documentation index, see [llms.txt](https://docs.nalpeiron.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nalpeiron.com/zentitle2-docs/ui-entitlements/using-entitlements/how-activations-work.md).

# How Activations Work

License activation is the process where your software connects to Zentitle's licensing system to verify that you have a valid license to use the product. The system authenticates the user, locates available entitlements, and allocates license seats based on intelligent priority rules.

### Overview

When a user attempts to activate software, the system:

1. **Verifies the user's credentials** (activation code, username/password, or SSO token)
2. **Finds available entitlements** that match their request
3. **Applies priority rules** to determine the best available license seat
4. **Activates the seat** and allows software access

### Activation Methods

Zentitle supports three different activation methods to accommodate various organizational needs:

#### 1. Activation Codes

**Best for:** Simple deployment, trial licenses, or distributed teams

* Customer receives a code like `ABC-123-XYZ`
* They enter this code when starting the software
* System finds their license and activates a seat

#### 2. Username/Password

**Best for:** Organizations wanting centralized user management without IT infrastructure

* Users receive invitation emails to create accounts on the [End User Portal (EUP)](/zentitle2-docs/ui-administration/configuration/end-user-portal.md)
* EUP handles password creation, recovery, and user authentication
* Users log in to the application with their EUP credentials
* System automatically finds and activates their assigned licenses

#### 3. Single Sign-On (SSO)

**Best for:** Large enterprises with corporate identity systems

* Users authenticate through their company's SSO system (like Microsoft Azure AD/ Google etc.)
* System receives a secure token proving their identity
* Automatically finds and activates their assigned licenses
* Provides enterprise-grade security with seamless user experience

For more information check [Account Based Licensing (Identity-based licensing)](/zentitle2-docs/ui-administration/configuration/account-based-licensing-identity-based-licensing.md) page.

### Smart Priority System

When multiple users compete for limited license seats, Zentitle uses an intelligent priority system to ensure fair and efficient seat allocation.

#### Priority Rankings

**Rank 4 - Highest Priority: Existing Users**

* Users who already have an active seat keep it when refreshing
* Prevents disruption to ongoing work
* *Example: Sarah is working in AutoCAD. When her license refreshes, she keeps her seat even if others are waiting*

**Rank 3 - High Priority: Regular Seats**

* Uses purchased seats first, before any overdraft seats
* Ensures customers get full value from their license purchase
* *Example: Company bought 5 seats, only 3 are used. New user gets one of the 2 remaining regular seats*

**Rank 2 - Medium Priority: Recycled Seats**

* Reuses seats from users who haven't been active recently
* Maximizes license utilization without additional costs
* *Example: John's seat expired 2 hours ago (laptop was offline). New user can take his seat*

**Rank 1 - Lower Priority: Limited Overdraft**

* Uses extra seats if the license allows, with usage tracking
* Provides flexibility during peak usage while maintaining compliance
* *Example: 5-seat license allows 2 extra seats during busy periods*

**Rank 0 - Lowest Priority: Unlimited Overdraft**

* Uses as many extra seats as needed (typically for evaluation periods)
* Helps customers understand actual needs before purchasing
* *Example: Trial license allows unlimited users to test software*

**Rank -1 - Filtered Out: Edition Mismatch**

* When users specify an edition, only matching licenses are considered
* Prevents accidentally using wrong license types
* Ensures users get the features they paid for

### Activation Examples

#### Simple Case: Available Seats

**Scenario:** 10-seat AutoCAD license with 3 seats currently used

**Process:**

1. User Mike enters activation code `CAD-2024-PRO`
2. System finds matching entitlement with available regular seats
3. Mike receives seat #4 out of 10
4. **Result:** Straightforward activation using purchased seats

#### Seat Recycling

**Scenario:** 4-seat Engineering CAD license, fully used, but one user has been offline for 3 hours

**Process:**

1. New user Jennifer tries to activate
2. System identifies expired seat from offline user
3. Jennifer receives the recycled seat
4. **Result:** Maximizes license utilization; previous user must reactivate when returning

#### Multiple Entitlements Selection

**Scenario:** User has access to two Design Suite entitlements:

* Entitlement A: 3/3 seats used, 1 overdraft available
* Entitlement B: 7/10 seats used, unlimited overdraft

**Process:**

1. User Alex logs in
2. System evaluates both available entitlements
3. Chooses Entitlement B (regular seats available)
4. **Result:** Alex gets seat #8 on Entitlement B, avoiding overdraft usage

### Working with Entitlement Groups

When using [Entitlement Groups](/zentitle2-docs/ui-entitlements/entitlement-groups-bundles.md), activation behavior is based on `editionId`:

#### Edition-Specific Activation

When you specify an `editionId` in your activation request:

* System looks for entitlements matching that exact edition
* If multiple entitlements have the same edition, selects the first with available seats
* **Does not fall back** to other editions if requested edition is unavailable

#### Default Activation

When no `editionId` is specified:

* System finds the first suitable entitlement with available capacity
* Uses the full priority ranking system described above
* Maintains backward compatibility with existing integrations

#### Activation Example

**Scenario:** User needs PhotoShop Professional edition specifically

**Available Entitlements:**

* Standard edition: 6/8 seats available
* Professional edition: 3/3 seats used, 1 overdraft available

**Process:**

1. User Tom requests Professional edition (by providing `editionId`)
2. System filters out Standard edition (rank -1)
3. Uses overdraft seat from Professional entitlement
4. **Result:** Tom gets required Professional features, even though Standard had regular seats available

### Key Benefits

#### For End Users

* **Fair Access:** Existing users aren't randomly disconnected
* **Maximum Value:** Regular seats used before expensive overdraft
* **Flexibility:** Overdraft provides buffer during peak usage
* **Transparency:** Clear understanding of activation priority

#### For Administrators

* **Predictable Usage:** Limited overdraft helps understand true customer needs
* **License Optimization:** Smart recycling maximizes license value
* **Reduced Support:** Clear priority rules minimize user confusion
* **Explainable Decisions:** Every activation choice has a clear, logical reason

#### For Support Teams

* **Clear Diagnostics:** Activation logs show exactly why decisions were made
* **Predictable Behavior:** Same configuration always produces same results
* **Actionable Errors:** Error messages point to specific solutions


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