Please make sure your USB dongle is correctly connected to the local PC. If this is the case, the error might be related to a known issue in the Licence Manager that does not correctly recognise your expired hardlock.

This error typically happens if you a try to update an expired licence. To solve the issue you have to perform the update via the Wibu Webdepot. Follow these steps:

1. Open the following site: http://lc.codemeter.com/23827/depot/index.php
2. In the "ticket" field enter your activation key and click next.
3. Scroll down and click "activate licences"
4. Follow the instructions given