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Authorizing the license in License Manager fails with the error, "Authorization denied because request would have exceeded max copies for the <authorization number>".
A status check of the License Manager returns, 'Not Running'.
This issue is caused by a failed authorization in the previous installation of ArcGIS for Desktop. When authorizing the license in License Manager after a reinstallation, the License Manager attempts to read the incomplete .dat file (license information) that is left behind in the C:\flexlm folder from the previous installation.
In some cases, license reset may be necessary. For example, after moving an ArcGIS application to a new computer, failure to authenticate licensing through a firewall, or the number of licenses has been exceeded. In these cases, contact Esri Customer Service for a license reset.