A token contains licensing information for software stored on another computer. The token connects to the computer wirelessly, and transmits the licensing information, preferably automatically. While the token is connected to the computer, at least one factor in a multi-factor authentication scheme is satisfied for licensed use of the software. When the token disconnects from the computer either at will, or by exceeding the range of the wireless connection, the software on the computer becomes unlicensed and then can no longer execute.