We are currently protecting our software with a USB dongle, but we would like also to store the application itself on it. I'm sure something like this exists, but we haven't be able to find it.

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It took about 2 minutes on Google to find the Dinkey FD dongle. I'm sure there are others. It took two more minutes to find somebody claiming a crack. I don't know your market, but make sure it is worth the effort: most of these schemes just annoy your legitimate customers without preventing people who are determined to copy your code.

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