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Remote Desktop Licensing Error: Causes and Solutions

"A problem with your Remote Desktop license will occur, and your session will be disconnected in 60 minutes." – this message is all too familiar to many system administrators. It appears when connecting to a Terminal Server (Remote Desktop Services) and signals a serious issue with the licensing system. In this article, we will break down the root causes of this error and provide step-by-step instructions to resolve it.


What Does This Message Actually Mean?

This error is a result of the "soft enforcement" licensing mechanism, introduced in Windows Server 2016 for Per‑Device licensing and in Windows Server 2019 for Per‑User licensing.

Simply put: if the RD Licensing Server is unavailable or misconfigured, the system does not block the connection immediately. Instead, it grants the user 60 minutes of working time. After that, the session is forcibly terminated. The user can reconnect, but the warning will reappear, and the session will again end after one hour.

This feature gives administrators time to detect and fix the issue without completely halting user operations. However, in the long run, it makes the server unusable unless resolved.


Main Causes of the Error

Microsoft identifies several key reasons why this warning appears:

  1. Licensing Service is not running. – The most basic yet common cause is that the Remote Desktop Licensing service on the license server has stopped.
  2. Incorrect configuration. – The RD Session Host does not know which license server to use, or the configured licensing mode (Per User / Per Device) does not match the installed Client Access Licenses (CALs).
  3. Network issues. – The session host cannot reach the license server due to firewalls blocking RPC ports or DNS resolution failures.
  4. Active Directory permissions. – If the license server is not a member of the Terminal Server License Servers security group in the domain, it cannot update user attributes (especially critical for Per‑User mode).
  5. 120‑day grace period has expired. – After installing the RD Session Host role, you have 120 days to set up licensing. If no valid licenses are installed and activated by then, this exact error appears.

Step‑by‑Step Troubleshooting Guide

Before making changes, ensure that your RDS CALs match the OS version (e.g., Windows Server 2022 CALs do not work with Windows Server 2019).


Step 1. Check the Licensing Service

Open the Services.msc console on the server where the Remote Desktop Licensing role is installed. Locate the service named Remote Desktop Licensing and verify that it is running. If it is stopped, start it.


Step 2. Configure Licensing Mode and License Server

Incorrect settings are the most common culprit. Settings applied via Group Policy override those in Server Manager.

Option A: Through Server Manager (GUI)

  1. Open Server ManagerRemote Desktop ServicesOverview.
  2. In the Deployment Overview section, click TasksEdit Deployment Properties.
  3. Navigate to the RD Licensing tab.
  4. Specify the correct licensing mode (Per User or Per Device) and add your license server.

Option B: Through Local Group Policy Editor (gpedit.msc)

  1. Press Win + R, type gpedit.msc, and press Enter.
  2. Navigate to: Computer Configuration → Administrative Templates → Windows Components → Remote Desktop Services → Remote Desktop Session Host → Licensing.
  3. Enable the policy Use the specified Remote Desktop license servers and enter the IP address or hostname of your license server.
  4. Enable the policy Set the Remote Desktop licensing mode and select the appropriate mode.
  5. Open Command Prompt as Administrator and run gpupdate /force to apply the changes.

Step 3. Verify Active Directory Permissions

If you are using Per‑User licensing, your license server must have permission to write usage information to Active Directory. Its computer account must be a member of the Terminal Server License Servers group.

  1. Open Active Directory Users and Computers.
  2. Locate the Terminal Server License Servers group in the Builtin container.
  3. Ensure that the license server's computer account is added to this group. If the license server is installed on a Domain Controller, add the Network Service account instead.

Step 4. Check Network Connectivity

Make sure the RD Session Host can reach the license server over the network. A simple ping is not sufficient. Verify that the required RPC ports are open (typically port 135 and dynamic ports above 1024).


Step 5. Check Grace Period Expiration

If you are sure that you have installed valid licenses but the error persists, the system may be stuck in an expired grace period state. In some cases, deleting the GracePeriod registry key under HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Terminal Server\RCM\GracePeriod can help. However, this requires taking ownership of the key, and Microsoft does not recommend this as a primary solution. Instead, use the RD Licensing Diagnoser in Server Manager to pinpoint configuration issues.


Conclusion

The 60‑minute disconnection error is not a death sentence – it is a clear signal that administrative intervention is required. It always stems from the session host being unable to obtain or apply a license for the user connection. In most cases, the problem is resolved by checking the licensing service, configuring the correct mode via Group Policy or Server Manager, and ensuring proper Active Directory permissions. By following this step‑by‑step guide, you can quickly diagnose and fix the issue, restoring stable operation to your Remote Desktop Services infrastructure.

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