My software (written in C#/.NET) have a simple key license system to activate certain resources. The way it works is: it creates a unique code based on the running computer's hardware, then mix this value with the client's activated licenses to create a password that will, on that specific computer, liberate access to the determinated resources. The key given to the client is a file with the password.
The way it verifies this is even simpler: the software calculates the expected password, and then matches with the password stored on the file. If it matches, the resources are liberated.
So, since the software itself calculates the correct password, I wonder if it's possible to someone take the software's DLLs and hack them to discover the calculation method.