What is the best way to secure desktop software?

My company created a desktop application that will be licensed to other companies, on a per user basis. Does anyone have any ideas on how to set up security on this so that the user can't copy it, and send it to other people? And also so that I can verify login creditials.

Here are some ideas I have heard, but don't really know anything about them:

1. Distribute thumb drives to each user that the user must have to login to the software
2. We have a website, so somehow connecting the application to check login credintials through the website.

Any other ideas, or help with the ones listed above, would be greatly appreciated.
tiehazeAsked:
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Éric MoreauSenior .Net ConsultantCommented:
what I don't like about item 2 is that if you are on the road or simply if your web connection is down, you won't be able to use the application.

have a look at http://www.emoreau.com/Entries/Articles/2007/12/Licensing-a-VBNet-application.aspx
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tiehazeAuthor Commented:
Do you have anything where the source code is in C#? I think I accidently posted this in the vb.net section.
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Éric MoreauSenior .Net ConsultantCommented:
>>Do you have anything where the source code is in C#?

Sorry but no. If you add ; here and there, it should work ;)
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tiehazeAuthor Commented:
Has anyone ever imlemented SecurID? If so, is this an option I should consider?
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