Valpar Software was sold on a per-copy basis. It can be installed on as many computers as you like but only the number of copies purchased can be operational at any one time.
For example, if two copies were purchased then only two installations of the Software can be functional at any one time.
To be functional, an installation of the Software must be "Authorized". The number of copies purchased is stored on Valpar's server. When you Authorize an installation of the Software the count decreases by one. When you Deauthorize the Software the count increases by one.
Conceptually, Authorization moves a virtual Token from Valpar's server to your computer. Deauthorization moves it back. This process allows you to move Authorization Tokens between your computers while keeping the number that are functional at any one time at no more than the number of copies purchased.
This is an Internet-based process so, of course, you must have an active connection.