A method and system for installing software and hardware licenses on electronic devices supporting licensable features. Specifically, a method is disclosed for installing licenses in a node based licensing scheme. The electronic device defining the node receives an input containing an authorization key. The authorization comprises a license for a service feature, a node identifier, a software version, and a sequence number. Information in the authorization key is used to install the license on the electronic device. The node identifier is compared to an official node identifier stored at the electronic device. The sequence number is compared to an official sequence number stored at the electronic device. The license is installed into a pool of licenses available to the electronic device when the node identifier matches the official node identifier and the sequence number matches the official sequence number. The sequence number ensures that the authorization key at most can only be used once.