alt Hacker NewsIt was widely used in engineering software because the license cost was equivalent to a large fraction of an engineer's salary. Anyone who used AutoCAD back in the 90s can remember.
When parallel ports were discontinued, they migrated to USB and network license servers.
A company I worked for in the mid-80’s used a PC based CAD package with this kind of copy protection. IIRC the cost of the software was about $5K, and engineers using it probably made around 50K/yr. This level of expense required a lengthy capex justification approval process. There was a category of users who didn’t need the software full time and since the software was tied to the dongle it was common to have the package installed on multiple workstations and borrow the dongle when needed.
The nature of our business was such that there was a lot of logic analyzers and signal tracing equipment in the lab and the dongle was reverse engineered and cloned after a couple of “where’d my dongle go” incidents.