Passive/Aggressive Scuttling
I agree with @metalideath that obfuscating and cludging the licensing code is not foolproof.
Here is an easily hidden technique I call 'scuttling' that works for apps deployed to Google AND Amazon. Scuttling is front-end piracy detection by the app. What to do once detected is in the purvey of the app creator.
- Aggressive Scuttling: Eg. Termination and/or alarms on pirated app. Network communication not necessarily required.
- Passive Scuttling: No app modification. Eg. enable tracking.
- Passive/Agressive Scuttling: subtle app modification. Eg. silently disable key features. Lead pirate into thinking they bungled, and into unpublishing the pirated app.
If your app was renamed and/or installed from any source other than Google or Amazon, scuttle() returns true.
// Dont just copy/paste this code - that is what automated crackers look for - cludge it!
// No network communication is required at runtime.
// myPackageName should decode at runtime to "com.yourpackagename"
// google should decode at runtime to "com.android.vending";
// amazon should decode at runtime to "com.amazon.venezia";
public boolean scuttle(Context context, String myPackageName, String google, String amazon)
{
//Scallywags renamed your app?
if (context.getPackageName().compareTo(myPackageName != 0)
return true; // BOOM!
//Rogues relocated your app?
String installer = context.getPackageManager().getInstallerPackageName(myPackageName);
if (installer == null)
return true; // BOOM!
if (installer.compareTo(google) != 0 && installer.compareTo(amazon) != 0)
return true; // BOOM!
return false;
}
RESULTS
The following screenshot was taken from google analytics showing a pirated tracked free app from playstore (com.android.vending) that was redeployed with aggressive scuttling (non-playstore installs detected and terminated). Non-playstore (not-set) tracking drops. Tracking was not required, but enabled for these measurements.

DISCUSSION
Note service signing plays a role in scuttling: The package manager enforces unique package names with unique signatures.
This presents the question of what to do when the app is scuttled (pirate detected by the app). Piracy is a form of viralization (uncontrolled distribution) of your app. It is already detectable by enabling the analytics tracking back-end. Scuttling allows the app creator to customize a front-end response with or without tracking.
Aggressive scuttling is obviously detectable by pirates (BOOM!). This encourages further cracking. Passive scuttling is far less obvious, but may involve tracking.
Piracy may not be preventable but it is predictable, detectable, and trackable.
Tracking can present insurmountable problems to pirates, but also presents it's own ethical issues.
Passive/aggressive scuttling requiring no network communication as outlined above is perhaps the best solution. It is easily hidden (unlike licensing) and can be tailored to be as unobvious as possible.