If a connection cannot be established between the client and the network license manager (NLM), check the following:
Is the NLM running correctly on the server?
Open the NLM status and check to see if the service is running and if there are any available licenses.
Is the port required for the NLM open on your firewall?
The TCP connections port must be open on both the server and the client. Also be sure to check any firewalls/routers between the client and server to see if the right ports are open.
Is the client using the right address and server port entries?
Use a text editing program to check the program's install.cfg file. This file is located in the program folder (e.g. in Windows 7: C:\Program Files\Magix\Program Name\). In the file, you'll find the following two entries:
Are the client and server experiencing any other communication issues?
You can test the communication between client and server by using Telnet on the client. To do this, enter telnet "server address" "NLM port" in the command line. A console window (without any meaningful output) should then open. If there are any communication errors when you do this, check your firewalls and the NLM which is running.
Also use the NLM status to check whether the number of "licenses in use" changes when you start the client. If it does, and you still get an error message, the problem lies somewhere on the way from the server to client. If the number of available licenses does not change, the communication path from the client to the server is likely blocked.