A system and method for managing licensing of virtual environment applications. A licensing module of a first installed virtual environment application detects installation of affiliated applications and gives them a group licensing key for passing it to the licensing server. The licensing server derives licensing parameters of the affiliated applications from the group key and gives the licenses to the affiliated applications, in case of successful validation. The licensing system provides protection from un-authorized copying of the applications. If an affiliated virtual environment application is copied (or moved) to another hardware node without its virtual environment, the licensing server will not give the license activation key to this virtual environment application.