According to one embodiment, a telephone system includes a plurality of telephone terminals, a first server apparatus and a second server apparatus. The first server apparatus includes a license authentication module and a transmission controller. The license authentication module performs license authentication by comparing a terminal ID included in a registration request with a terminal ID stored in the license memory. The transmission controller reads from the license memory a license authentication code corresponding to a telephone terminal, and transmits to the telephone terminal a license authentication code added check information.