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When using a USB thumbdrive to move a floating license file (.efl9) from one computer or server to another, for instance, when importing a license into the license manager on a machine in a closed network, the license file can be corrupted thus causing the ArcGIS License Manager service to fail.
Errors reported by License Manager Tools read as follows:
"Unable to start LM server."
"[Detecting lmgrd processes...]
Error getting status: No SERVER lines in license file
License path: C:\PROGRA~1\ESRI\License\arcgis9x\ARCINFO9.lic
FLEXlm error: -13,66"
The act of copying a text file to and from a USB thumbdrive removes the line and page break characters from the file, rendering it incorrectly formatted for use with the ArcGIS License Manager.
An example of this problem may be seen when opening the .efl9 floating license file using a text editor. If this corruption has occurred, the information in the floating license file appears as one long line, rather than each feature appearing on a separate line.
There are two ways around this issue.
Do not change the text in the license file, rather, add the appropriate spacing and line breaks to re-create the original license file structure as per the example below.