This is really cool. 1Passwd has developed a drag and drop graphical software license key. You receive the key via email or on the web, and then drag it to your application. It avoids having you type in random letters and numbers, and the software developer can put as much information as they want in the key. I haven’t read the details of the technology, but they could be using steganography to encode information in the images. This doesn’t really change the fundamental problems of software license keys (such as forcing them to be only used on one computer), but it does make the process more user friendly.