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The first step is to install the Terminal Services License Services server role. The license server does not necessarily have to be installed on a system which is acting as a Terminal Server. The installation can be performed using by selecting ''Roles'' from the tree in the left hand panel of the ''Server Manager'' tool.
If the server is already configured with the Terminal Services role , click on the ''Add Role Services'' link. In the resulting dialog titled ''Select Role Services'' select the check box next to ''TS License Server'' and then click ''Next'' to proceed to the ''Configure discovery scope for TS licensing'' screen as illustrated in the following figure:
== Activating the TS License Server ==
Once the TS License Server has been installed the next task is to activate it. This task is performed using the ''TS License Manager'' which may be launched by running '''tsconfig.exe''' or via ''Start -> All Programs -> Administrative Tools -> Terminal Services -> TS License Manager''. Once started, the TS License Manager dialog will appear containing a list of detected license servers on the network. The only license server listed in the following figure is the one on the local server. Because this has yet to be activated it is listed with with a red circle containing an X mark next to it:
