A distributed license management system and method for managing software licenses are provided. The disturbed license management system comprises a repository for storing workstation information, a message interceptor for intercepting a message call coming from a workstation to a server, a workstation identification module for determining if a workstation identifier associated with the message call is defined in the repository, and a device verification module for allowing access to the server if a device identifier of a workstation is associated with the workstation identifier. The method comprises the steps of storing workstation information, intercepting a message call coming from a workstation to a server, determining if a workstation identifier associated with the message call is defined in stored workstation information, and allowing access to the server if a device identifier of the workstation is associated with the workstation identifier.