# Problems with licenses

Components that do not have a license do not work.

Note: Do not confuse Licenses with Certificates. Licenses are a proof of purchase used for ensuring that your organization is a legal license holder of the software. Certificates are proof of identity that components use to authenticate themselves in system communications.

Licenses are introduced to the SMC as elements that you install in your Management Server. You must install licenses to set up the components your organization has purchased. However, on current Forcepoint NGFW appliance models, the licenses can be generated automatically.

If the Management Server does not have a valid license, you see a license-related dialog box each time you log on using the Management Client. You cannot create a working configuration without a Management Server license because most controls are disabled. If an engine component is missing a license, you can create a configuration for it, but you cannot transfer that configuration to the engine.