Industry 4.0 in the context of software protection and license management systems

29.09.2025

Industry 4.0 refers to the networking of physical machines, sensors and software systems using digital technologies such as IoT, AI and cloud computing to enable autonomous, data-driven production processes. In the context of software protection, this includes
- Cyber-physical systems (CPS) with integrated software control
- Secure-by-design architectures for machine communication
- Dynamic license models for cloud-based industrial applications

Importance for software protection & license management

Industry 4.0 requires new protection mechanisms to secure the growing attack surface of networked production environments:

Objective Description
Protection of intellectual property 87% of industrial companies see software piracy as the biggest threat to IP in networked factories
License compliance Flexible management of pay-per-use, subscription and feature licenses for machine control software
IT/OT convergence Integration of IT security standards (e.g. ISO 27001) into operational technologies (OT)

Key components  

Software protection systems  

Modern software protection systems increasingly rely on versatile security mechanisms such as hardware-based encryption or API security to secure the license. One example of a system with hardware-based encryption is the CRYPTO-BOX, which enables broad support for a wide range of development environments and platforms thanks to its API integration.

License management tools  

- Containerized licenses for edge devices  
- AI-supported usage analyses to avoid over-licensing  
- Blockchain-based license chains

Influencing factors

Factor Impact
5G network expansion Higher data volumes → stricter access controls
Cloud migration 63% of manufacturers use hybrid cloud stack → hybrid license management required
EU Cyber Resilience Act Mandatory security certification for industrial software from 2025

Advantages for companies  

- Control over distributed systems: Central management of licenses across locations  
- Scalable models: Usage-based billing reduces CAPEX by 15-30%  
- Compliance reduction: Automated audits reduce penalty risks by 90%  
- Competitive advantage: 40% faster time to market for new features  

Future 2025+: Relevance for the industry  

- Edge licensing: Decentralized license distribution for IoT devices 
- Quantum-Safe Encryption: Preparing for post-quantum attacks in production networks  
- Regulatory drivers: EU data space “Manufacturing-X” requires standardized protection protocols

Conclusion

Modern software protection and license management systems are essential to ensure security, compliance and scalability in Industry 4.0 environments. In the future, technologies such as decentralized edge licensing and quantum-safe encryption will be crucial to overcome regulatory requirements and cyber-physical threats.

Author:

Steffen Kätsch

Senior Support Engineer / Consultant License Management

Steffen Kätsch is is a support engineer with many years of experience in consulting medium-sized and large companies in the field of software protection and license management.

Education: FH Jena

Expertise: License Management Software Licensing Software Protection IT Compliance Digital Rights Management

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