“ #1 Choice of Software Developers

Worldwide Since 2002

“
*Source: Frost & Sullivan World Content Protection and Digital Rights Management Markets
Doc #N1AF-70, March 2007 and IDC Worldwide Hardware Authentication Token
2005-2009 Forecast & 2004 Vendor Shares Doc #34452, December 2005

Enabling Business Growth

through Software Rights Management

A l a d d i n . c o m / H A S P
 Software Piracy - a Revenue Draining Epidemic
Software is Intellectual Property. Highly valuable, it Piracy Rate by Region*
must be protected from unauthorized use in order to US/Canada Western Europe Central/Eastern Europe
ensure new and existing revenue streams. Software 22% 34% 68%

piracy continues to increase globally. The effects of

this increase are devastating: not only does software
piracy reduce revenues, it also results in less R&D, and
in less investment in marketing and channel
development. The only way to stop software piracy
is to protect software from unauthorized use.

Even with all the investment software vendors and

publishers make in their software, there is still
untapped potential. Piracy and conventional selling Latin America Middle East/Africa Asia Pacific
models continue to be a hindrance. Then there is the 66% 60% 55%

challenge of expanding into new markets; converting

*BSA and IDC Global Software Piracy Study, May 2007
casual trial users into paying customers; and layering
advanced software features onto pay-as-you-go and
subscription-based software.

The question is: How can the real value of software be captured – easily, safely and
securely – in a world where global piracy costs businesses nearly $40-billion per year?

The Answer is: HASP SRM

HASP SRM is the ultimate Software Digital Rights Management
system that:

• Provides an all-in-one hardware- and software-based solution

• Increases sales by protecting against piracy and unauthorized

software use

• Protects Intellectual Property embedded in software

• Grows business via secure and flexible licensing

• Supports single- and multi-user environments

• Manages and optimizes the DRM lifecycle of software products

SOFTWARE
PROTECTION
1
 Introducing HASP ® SRM
The industry’s first all-in-one solution for hardware and
software-based protection and licensing.
HASP SRM represents a whole new level in software security and profitability. Providing software protection
and enabling secure and flexible licensing and distribution, HASP SRM can help software vendors realize new
go-to-market strategies – giving them a competitive advantage at a time when product lifecycles are shortening
and competition is intensifying.

With HASP SRM, vendors choose either hardware- or software-based protection to guard against software
piracy and illegal use. HASP SRM allows user access to protected software only when a protection key is available
on the end-user’s computer: either an externally-connected HASP HL hardware key, or through a HASP SL
electronic software key.

Enabling Business Growth through Software Rights Management

HASP SRM is a Software Rights Management solution that enables vendors to increase their revenue and grow
their business. HASP SRM combines hardware- and software-based protection and licensing into a single, all-
in-one solution that allows vendors the flexibility to choose the level of protection that best suits their business
needs.

HASP SRM:

• Increases sales by protecting what’s rightfully the vendor's: HASP SRM offers strong anti-piracy and copy
protection features that ensure vendors get paid for every software copy in the field.

• Grows business by allowing broader market reach and deeper account penetration: HASP SRM features a
variety of licensing models and a unique and innovative Cross-Locking technology that allows vendors to
choose hardware- or software-based locking methods based upon their business needs. Vendors gain the
flexibility to conveniently offer attractive software packages and creative pricing models.

• Maintains the vendor's competitive advantage and prevents industrial espionage: HASP SRM offers powerful
anti-reverse engineering features to protect the Intellectual Property embedded in software code and data.

• Minimizes the costs typically associated with Digital Rights Management: HASP SRM is designed to Protect
Once—Deliver Many™ which optimizes the integration of DRM within the organization – ensuring quick
time-to-market, increased profitability and reduced Total-Cost-of-Ownership.

A l a d d i n . c o m / H A S P 2
 Features & Benefits
Unmatched Protection Against Software Piracy
To ensure software vendors get paid for every software copy being used, HASP SRM employs the 128-bit AES
encryption algorithm. This creates a robust link between the software application and HASP SRM Protection
Key – preventing software piracy and ensuring authorized use of the software.
During runtime the protected software sends encrypted strings to the protection key (HASP HL or HASP SL) which
decrypts the strings and produces a response that cannot be imitated. If the response from the protection key is
correct, the application will run. If the protection key is not present or the response from the key is incorrect, the
application will not run.

AES 128-bit Encryption

Encrypted Data

Protected HASP HL
Software

AES Encryption
Engine

HASP SL

Decrypted Data

Software vendors can use more than 64,000 encryption keys when protecting their software. This enables unique
security for every application, module, and feature and ensures that the HASP SL software-based protection
doesn’t compromise the security of HASP HL hardware-keys.

Strong Intellectual Property Protection

HASP SRM Envelope
HASP SRM maintains a software vendor’s competitive advantage
by protecting the Intellectual Property embedded in software
applications and application data files. The HASP SRM Envelope Automatic
is an automatic file wrapper that provides robust protection against Protection
software reverse engineering, file encryption, code obfuscation
and system-level anti-debugging. This ensures that algorithms,
Copy IP Hacking Data
trade secrets, and professional know-how embedded in the Protection Protection Protection Protection
software are secured against hackers.
Software solutions not only consist of executables and DLLs, they
also contain data files which may be of even greater value than
the software applications themselves. In many cases, these data files contain highly sensitive information and
Intellectual Property which must be secured against prying eyes and theft.
To protect data files, the HASP SRM Envelope and DataHASP tools wrap the application, encrypting and controling
access to the software data files so that only authorized users and the hosting software can decrypt and upload
them. In seconds, vendors get top-notch security and access-control for their entire product suite.

31 HASP SRM
 FEATURES & BENEFITS
Secure & Flexible Licensing
Recent trends indicate that in the software industry, pricing and licensing policies are being made increasingly more
flexible in order to improve vendor-customer relationships and grow revenue. HASP SRM features secure licensing
options enabling the offering of attractive software product solutions and pricing models. HASP SRM supports multiple
licensing models directly out-of-the-box.
All of these licensing models can be locked to a HASP HL hardware key or HASP SL software key. If the out-of-the box
licenses don’t fit a vendor's needs, HASP SRM also features the flexibility to create custom license models to suit unique
business requirements. The reward? Software vendors reach a far broader audience and expand their business by
offering software packages and license terms that fit the purchasing preferences of their customers.
HASP SRM’s Remote Update System (RUS) enables Software Vendors to remotely and securely upgrade licenses and
their terms in the field. All remote updates to the keys are AES-encrypted and RSA-digitally signed. UpdateOnChip™
technology embedded in every HASP HL key ensures that the key authenticates all updates of data and license
extensions. HASP SRM also features the infrastructure for creating web-based tools that enable hands-free license
upgrades for end-users.

Apply HASP SRM Expand Business

License Model with Flexible Pricing Models

Enable or disable product features according to customer

needs and charge only for the functionality they use.

Offer software rentals and charge periodically for

software applications, modules or features.

Charge periodically for software upgrades and new

versions.

Charge by the number of network seats that use the

software simultaneously in network environments.

Combine floating and rental/subscription pricing models.

Offer limited trial versions free-of-charge.

Charge for the number of times software functionality

is used over a period of time.

Offer volume pricing for multiple single-user copies

operating in a network environment.

SECURE & FLEXIBLE

LICENSING
A l a d d i n . c o m / H A S P 4
 How HASP SRM Works
At the Software Vendor’s site, engineers protect the software and release a single protected application binary.
Product managers then create a variety of software packages for which they apply licenses, define HASP SRM Protection
Keys and then distribute – either boxed, or via the internet.
Once the end-user receives and installs the software, it can be used only after the HASP SRM Protection Key is applied.
This depends on the type of key the product manager chose and was distributed with the software:
• HASP HL: in this case, the end-user connects the HASP HL key to the USB port of their PC.
• Product Key: in this case the end-user transmits it electronically via the internet, to the HASP SRM Business Studio
Server. A HASP SL key is sent back and installed on the end-user’s PC.

Software Vendor

Boxed Delivery

Protects Applies Defines HASP SRM Distributes

Software Licenses Protection Key Software

Product Key
Software Protected Licensed Software Locked to
Vendor Software Software HASP HL or HASP SL
Electronic Delivery

Business HASP SL Key

Studio
Server
Product Key

End-User

Enters HASP SL
Product Key
Software is Locked
to User’s PC and Activates Installs
runs according to Software Software
License terms
or

Connects
HASP HL End-User

Software is Locked
to HASP HL and
runs according to
License terms

51 HASP SRM
 LIFECYCLE MANAGEMENT
Software DRM Lifecycle Management
Software DRM solutions are integrated throughout the entire life-cycle of a software product and are used by
numerous players within a software vendor’s organization. The Software DRM solution is applied from the early
stages of engineering, through the point where the business and pricing models are defined, the level of security
and software packaging are determined, and finally, to the later stages of order processing, delivery and future
software upgrades.

The Power of Protect Once—Deliver Many™

The HASP SRM design is based on the Protect Once—Deliver Many concept in which the protection process is
completely separated from business processes. Aladdin’s unique and innovative Cross-Locking™ technology
allows business decision-makers to choose and apply the license models and HASP SRM Protection Keys AFTER
the software has been protected by engineering. The software vendor’s engineering team protects the software
once and releases a single protected software gold master. Product and marketing managers can then apply
any number of license models and HASP SRM Protection Keys (HASP HL and/or HASP SL) anytime throughout
the entire product lifecycle – even once it’s at the end-user’s site. As a result, software vendors can choose the
level of security based on business considerations such as budget, high or low end products, market segments,
geographies, users, software versions and more.

With Protect Once—Deliver Many, HASP SRM manages and optimizes the entire DRM lifecycle of software
products – increasing profitability and reducing Total-Cost-of-Ownership. When marketing managers want to
change course and apply a new licensing model, or change the HASP SRM Protection Key due to specific business
considerations or customer requirements, the change can be implemented immediately without impacting
precious R&D resources.

HASP SRM empowers software vendors to quickly address new business opportunities, ensures quick time-to-
market, and presents a software product that is much easier to maintain.

Protect Once—Deliver Many™

Protect and Release

Engineer Single Application Binary

Protected
Software

Define Define Define

Delivery Protection License
Method Key Model
Product Manager

A l a d d i n . c o m / H A S P 6
 HASP SRM Protection Keys
HASP HL: For Hardware-Based Software Protection and Licensing
HASP HL is the hardware-based protection and licensing component of HASP SRM. Named market
leader in the Software Licensing Authentication Tokens market by IDC for four-years running,
HASP HL is a secure USB key with memory that protects software against piracy and illegal
use by allowing access and execution of the protected software only when the key is
connected to the computer.

HASP SRM establishes a secure communications channel for communication sessions between
the highly secure, virtually impenetrable AES 128-bit encryption engine on the HASP HL Key and the application.
This creates a virtually hack-proof end-to-end channel that provides an extra level of protection against attacks
that attempt to dispense with the need for the protection key. In addition, each HASP HL key features an
advanced licensing system, providing storage capacity for numerous licenses. Aladdin’s unique LicenseOnChip™
technology embedded in each HASP HL key means a software vendor's licenses are hardware-secured and
effectively tamper-proof.

HASP SL: For Software-Based Protection and Licensing

HASP SL is the software-based protection and licensing component of HASP SRM. HASP SL enables software
vendors to securely distribute their software via CD or the Web using software Product Activation. Based upon
the HASP HL protection technology, HASP SL provides the strongest software-based security available.

HASP SL protects software copyrights and Intellectual Property, while also enabling Electronic Software Distribution
(ESD) to reduce distribution and operational costs. HASP SRM performs Product Activation by means of
a Product Key that is supplied by the software vendor to the end-user. To activate the software, the
end-user transmits the Product Key to a remote HASP SRM activation server (Business Studio Server)
and a HASP SL key with license terms is sent back and installed on the end-user’s PC.

HASP SRM Product Activation is secured with a Secure Socket Layer (SSL)-based communication
channel between the end-user machine and the activation server.

Benefits of HASP HL Protection Keys Benefits of HASP SL Protection Keys & Product
Activation

• Provides the strongest protection against software
piracy: correct functionality of the software
depends on presence and logic of the HASP HL
key, which is virtually tamper-proof.
• Offers the strongest enforcement for license
terms, which are securely stored and protected
inside the HASP HL key.
• Enables portability so the software can be used
on any PC to which the HASP HL key is connected.
• Does not require an Internet connection to
activate the software.
• Offers strong software-based copy protection when
protecting with a hardware-key is prohibitive.
• Supports Electronic Software Distribution enabling
software vendors to sell their software via the
Internet.
• Activation is instantaneous. End-users can
download the software and immediately start
using it with its fully-licensed functionality.
• The On-line connection with end-users enables
software vendors to optionally gather end-user
registration data* for marketing purposes.

* Available in future release

7 HASP SRM
 Cross-Locking Components
Choosing the HASP SRM Protection Key
HASP SRM Protection Keys are available in a variety of models to support every business need:

Maximum
Model Encryption Unique ID RW/ROM Number of
Memory Protected Comments
Name Algorithm Number
Programs

HASP HL AES 128 bit Aladdin's most cost-effective

- - -
Basic software protection solution.

HASP HL AES 128 bit 112/112 39 Ideal solution for component

Pro Bytes licensing.

An advanced model of the Pro

HASP HL AES 128 bit 4/2 KB 234 for feature-based and/or metered
Max licensing.

A variation of the Max model,

contains an untamperable real-time
HASP HL AES 128 bit 4/2 KB 234 clock indicating time and date. Ideal
Time for software rentals and
subscription-based licensing.

The most advanced system available

for protecting software running in
network environments. A single key
HASP HL AES 128 bit 4/2 KB 234 connected to any station in the
Net network limits up to 10, 50 and 250+
concurrent users.

Combining the features of the Net

key and the Time key, the NetTime
HASP HL AES 128 bit 4/2 KB 234 is an ideal solution for implementing
NetTime time-based licensing solutions in
networked environments.

Ideal solution for component,

feature-based and/or metered
licensing. Also contains flash memory
HASP HL AES 128 bit 4/2 KB 234 (512 MB or 2 GB option) enabling
Drive software application to be
distributed on-key.

The HASP SRM secure software-

based protection key. supports
numerous out-of-the-box and
HASP SL AES 128 bit 4/2 KB 8000 customized licensing models for
software run by single users or by
multiple users in network
environments.

CROSS-
LOCKING
A l a d d i n . c o m / H A S P 8
 HASP SRM Tools
A True Role-Based Solution
Featuring easy-to-use role-based tools for developers, product managers, order processing and production,
HASP SRM ensures a short learning curve, and optimum use of employee time and core competencies. This
ensures fast time-to-market and the ability to quickly respond to changing market needs.

HASP SRM Vendor Suite

The HASP SRM Vendor Suite is a programmer utility that includes all the tools necessary to protect applications
from piracy and Intellectual Property theft.
The Envelope automatically wraps the application with a protective shield which integrates anti-reverse
engineering and anti-debugging measures, and implements automatic licensing – all without the need to
access the source code.
The HASP SRM API enables vendors to customize protection by inserting calls to the protection key throughout
the source code and decrypting pre-encrypted strings to create a strong dependency between the application
and the protection key. The API also implements automatic licensing and enables the ability to read and
write to secure storage on the HASP HL USB key or to the HASP SL secure storage on the user’s PC. To facilitate
usage of the HASP SRM API, the Vendor Suite features ToolBox, an API tutorial that also enables code
generation that can then be copied, and pasted in to the software application source code.

HASP SRM Business Studio™

HASP SRM Business Studio is a tool which a software vendor's product and marketing staff use to prepare
their software product for market. It includes all of the tools necessary to appropriately license and lock the
application to a HASP HL hardware key, or a HASP SL software product key AFTER protection is implemented.
The HASP SRM Business Studio also allows software vendors to manage and track licenses, and create product
keys that are later used for the product activation process. The HASP Business Studio features the ability to
capture optional end-user registration information when the user activates the product, and then perform
remote upgrades or downgrades of software licenses once they are in the field. License management and
registration data can easily be exported to Excel.

HASP SRM Business Studio Server

A component of the HASP SRM Business Studio, the Business Studio Server, is used to activate software and
perform remote updates, using Product Keys. The end-user transmits a Product Key over the Internet to the
Server, which in turn validates it and returns either a HASP SL software key or an update/license extension
back to end-user’s PC. In addition, the
Software Vendor
Server tracks customers, products,
HASP SRM Business Studio Server Business
licenses and order information. Studio
Client
The Business Studio API allows Product Tree Business License
Rules Terms
integration with backend ERP and Features Products
CRM systems. Aladdin gives
vendors the option of hosting
the Business Studio Server in- Order Production
Software
house, or outsourcing it to Database Vendor’s
HASP HL HASP SL Update Customer Backend
Aladdin Knowledge System’s Systems
(ERP/CRM)
Managed Services.

9 HASP SRM
 HASP SRM in Multi-User Environments
The strength and flexibility of HASP SRM goes beyond protection and licensing for software applications used
by single users. A broad spectrum of capabilities enables HASP SRM to offer the ultimate DRM solution for
multiple users running software applications in organizations with network environments.

Floating licenses, which are a cost-effective way of sharing software among multiple users, are supported by
HASP HL Net and NetTime, and by HASP SL protection keys. Software vendors can choose the HASP SRM
Protection key based on usage preferences that are dictated by their end-users’ organizational policies. At the
end-user site, the system administrator installs the HASP SRM License Manager on any machine in the network,
connects a HASP HL Net or NetTime protection key, or if HASP SL is used, electronically activates the software
once on this machine, while all client stations remain key less.

LM
HASP HL contains license and number
of authorized floating users

Connects HASP HL Net

or NetTime
HASP SRM Business
or Studio Server

Activates with
System
Administrator
Product Key LM Product Key

HASP SL contains license and number

of authorized floating users

HASP SRM Admin Control Center

The HASP SRM Admin Control Center is a customizable, Web-based, end-user license management utility that
enables centralized tracking of HASP SRM-licensed applications, and administration of HASP License Managers
and HASP SRM protection keys. The Admin Control Center provides a single console view of all the licenses and
license servers within an organization, enabling a single system administrator to effectively manage and
maintain licenses of applications protected and licensed with HASP SRM. Using the Admin Control Center,
administrators can view which licenses are in use and by whom, in real time, making it easy to determine and
resolve license availability and compliance issues.

CONTROL
A l a d d i n . c o m / H A S P
CENTER 10
 Powerful Marketing Tools
HASP SRM offers software vendors powerful marketing tools designed to expand market reach
and boost sales.

Secure Trialware
Secure Trialware is a means to generate revenue through viral marketing. HASP SRM enables software vendors
to distribute secure trialware versions of their software, allowing users to try some, or all parts of the software
for a limited period (time-based or execution-based). After a pre-determined trial period, the trial version
securely expires, and no longer runs on the end-user’s machine. The user can be directed to the vendor's website
to purchase a full license for software, which can be delivered via a software-based product key, or a hardware-
based HASP HL key. With HASP SRM’s secure trialware feature, vendors can now launch new products with
maximum impact.

Super Distribution
HASP SRM also enables Super Distribution of a software vendor's software. While access to the trial software
is limited for each user, they are free to share their trial version with as many friends as they choose, exposing
its capabilities to many others who can evaluate the software for the same limited trial period. This converts
the casual sharing of software from a revenue drain into an efficient distribution channel – securely leveraging
the power of viral marketing! Vendors thus turn potential customers into paying customers by allowing
evaluation of software, while ensuring it is protected from being illegally copied or used after the trial period
expires. The vendor's Intellectual Property remains safe – and so do their revenues.

Sends to Friends
Sends to Friends

Offline / Retail Channels

User Buys Software

Online / Web

End-User Registration
HASP SRM also will allow you to gather user registration information* that can be linked to already-captured
license data to gain insight into key customer and market trends - functionality that will not only improve your
decision-making and product performance, but can also be powerful marketing tool.

End-User Registration

Compile Data

Activation

Software Vendor

End-User

Product
Announcement Newsletters

* Available in future release

11 HASP SRM
 The HASP SRM Solution

HASP® SRM Vendor Suite

HASP SRM
ction

Envelope
Prote

Protect Once
HASP SRM
Software ToolBox API

HASP® SRM Business Studio™ Business Studio Server

ng

License
Licensi

Deliver Many Models Licenses

& Terms
Protected Software
Updates
HASP SRM Protection Keys & License
Extensions
HASP HL HASP SL
g
Lockin

HASP SL Keys

HASP® SRM in the Field

Single Users Network Environments

HASP
LM
ment
Deploy

Admin Control Center

HASP
LM

HASP SRM includes the following components:

For Software Developers For Marketing Managers For Software End-Users

HASP SRM Vendor Suite • HASP SRM Business Studio • HASP SRM License Manager
• HASP SRM Envelope • HASP SRM Protection Keys • HASP SRM Admin Control Center
• HASP SRM ToolBox (HASP HL and HASP SL)
• HASP SRM API • HASP SRM Business Studio API
(to integrate with backend
ERP/CRM systems)

A l a d d i n . c o m / H A S P 12
 Platform Support

HASP SRM Platform Support (end-user)

End-User Operating Systems supported:
• Windows 2000
• Windows XP*
• Windows XP Embedded
• Windows Server 2003*
• Windows Vista*

HASP SRM Platform Support (software vendor)

Development platforms supported for HASP SRM Vendor Suite:
Windows XP (w/ Service Pack 2), Windows Server 2003, Windows Vista.

Platforms supported for HASP SRM Business Studio Server:

• Windows XP (w/ Service Pack 2)*
• Windows Server 2003 (w/ Service Pack 1 and later)*
• Windows Vista*
• Database: SQL Server 2005 and SQL Server 2005 Express Edition

Supported Programming Languages & Environments

(Runtime API)
32 Bit: 32 and 64 Bit:
• C++ for MSVC 6 • .NET
• C++ for MSVC 7 • Java
• C++ for MSVC 8 • C for MSVC 8
• Borland C++ 6
• Borland C++ 5.5
• COM

* includes 32- and 64-bit versions

Provided Samples:
For information on available interfaces and code samples, please visit:
www.Aladdin.com/hs

13 HASP SRM
 Try HASP SRM Today

The industry's first all-in-one hardware- and software-based

protection and licensing solution.

Getting Started
Request the HASP SRM Developer Kit today!
From the moment you begin using your HASP SRM Developer Kit, you'll see why
HASP is the #1 Choice of Software Developers Worldwide*. Quite simply, HASP
SRM ensures the highest level of security for your software and provides an easy
set of role-based tools to automatically protect your software and IP, as well as
to implement new and innovative licensing options.

Visit www.Aladdin.com/HASP or contact your local Aladdin representative to

secure your software’s future.

*Source: Frost & Sullivan World Content Protection and Digital Rights Management Markets Doc #N1AF-70, March 2007 and IDC

HASP
Worldwide Hardware Authentication Token 2005-2009 Forecast & 2004 Vendor Shares Doc #34452, December 2005

SRM
A l a d d i n . c o m / H A S P 14
 About Aladdin
Aladdin (NASDAQ: ALDN) is a leader in digital security, providing solutions for software Digital
Rights Management and Internet security since 1985.

Serving more than 30,000 customers worldwide, Aladdin products include: the HASP® family
of leading software Digital Rights Management products; the USB-based eToken™ device for
strong user authentication and e-commerce security; the eSafe® line of integrated content
security solutions that protect networks against malicious, inappropriate and nonproductive
Internet-borne content.

To learn more, visit the Aladdin Web site at http://www.Aladdin.com.

are trademarks or registered trademarks of their respective owners.

HASP SL, HASP Business Studio, Cross-Locking, LicenseOnChip, and LoC are trademarks of Aladdin Knowledge Systems, Ltd. All other names
8/8/2007 © Aladdin Knowledge Systems, Ltd. All rights reserved. Aladdin and HASP are registered trademarks and HASP SRM, HASP HL,

For more contact information, visit: www.Aladdin.com/contact

North America T: +1-800-562-2543, +1-847-818-3800 Italy T: +39-333-9356711 Frost & Sullivan
Israel T: +972-3-978-1111 2007 Product Innovation Award
UK T: +44-1753-622-266 Software DRM
China T: +86-138-18184444
Printed in Israel

Germany T: +49-89-89-4221-0
07612

India T: +919-82-1217402
France T: +33-1-41-37-70-30
Brazil T: +55-11-6106-5101
Benelux T: +31-30-688-0800 Japan T: +81-426-607-191
Spain T: +34-91-375-99-00 All other inquiries T: +972-3-978-1111