# When do I have to upgrade licenses?

Components do not run without a valid license. Always make sure that you have an updated license before you make any change that is not supported by the current license.

Licenses must be updated for new software versions and if the binding detail in the license changes:

- Software upgrades — No action is required if automatic license upgrades have been enabled on the Management Server. In an environment with multiple Management Servers, no action is required if the automatic license upgrade feature has been enabled on the active Management Server that controls the Shared Domain. Otherwise, upgrade the licenses manually. License upgrades are available shortly before a new version is released.
- Changes in license binding — Change licenses manually if:
  - You change a control IP address used for license binding in a static IP-address-bound license.
  - You move a dynamic Management Server POL-bound license to a different Management Server.
  - You replace an IP-address-bound license for an SMC server to a license bound to the unique installation identifier (UIID) for the SMC.
  If you have IP-address-bound licenses for NGFW Engine components, you must change the license to a Management Server POL-bound license if you change the NGFW Engine’s control IP address.

Each license indicates the maximum version for which the license is valid, but the license is also valid for all previous software versions. You must update the license if you upgrade a component to a new major release indicated by a change in the first two digits of the version number (for example, an upgrade from 1.2.3 to 1.3.0 or an upgrade from 1.2.3 to 2.0.0). If only the last number changes, the existing license is valid also for the later software version.

Appliance licenses do not allow upgrading an appliance beyond the last supported software version on which the appliance can run. See Knowledge Base article 9743 to check which appliance models have a last supported software version. With third-party hardware, be careful not to upgrade the software to a version that exceeds the hardware’s capabilities.