The present invention provides a method, program product and system for distributing a licensed digital product. The invention involves assigning a unique identifier to the digital product as well as each copy of the product. The invention also assigns unique identifiers to all distributors of the product. When a copy of the digital product is sold from the manufacturer to an end user through the distributors, the unique identifier of that copy is matched with the unique identifiers of all distributors who were involved in supplying the copy to the end user. After validating the purchase of the digital product a unique activation code is issued for that copy, which allows the end user to utilize the features of the product. The distributors in the supply chain that were involved in selling that particular copy of the digital product are then paid according to a pre-determined schedule.