A method for secure installation of software applications. The user receives the software, partly encrypted, and an installation token for a number of licenses from the software provider, plugs the software and the installation token into a computer, and launches the installation application. A Secure Authenticated Channel is established between the installation application and the installation token and a unique identifier of the computer is sent thereon to the installation token. The installation token verifies that there are remaining licenses, decreases the remaining licenses, authorizes the installation and sends the decryption key and a certificate/key pair to the installation application that decrypts and installs the software, preferably linking the installation to the computer's identifier. A variant allows (virtually) unlimited installations of time limited programs that are transformed into time unlimited programs once the installation token has reported the number to the software provider and paid for the necessary licenses. Also provided is the installation token.