lmreread failed: Invalid parameter. (-42,381:2 "")

Error Message

When attempting to run the 'lmutil lmreread' command for License Manager, the following error message is returned:

"lmreread failed: Invalid parameter. (-42,381:2 "")"

Installation of the ArcGIS License Server Administrator on Windows 2008 R2 or later produces the same error when running other License Manager commands, such as 'lmborrow', 'lmdiag', 'lmdown', 'lmhostid', or 'lmstat'.

Cause

This error is caused by the 'lmutil' being unable to find the license file due to enhanced security starting at Windows 2008 R2.

Solution or Workaround

1. Open Control Panel > System > 'Advanced system settings' to open system properties.
2. Navigate to Environment Variables > New under 'System variables'.
3. Enter the following:
   - Variable name: LM_LICENSE_FILE
   - Variable value: C:\Program Files (x86)\ArcGIS\License10.2\bin\service.txt.