A connection in the first state is not yet authenticated. This means that the corresponding stations have established unique connection IDs for each other, but the necessary authenticationprotocol has not been completed. A client connection in this state is denied access to all essential NetWare services, such as the NetWareFile System.
Each NetWare network has a limited number of licensed connections. This number is set at the time of purchase. A connection in the second state is authenticated but not licensed. This means that the appropriate credentials have been created for the authenticated connection but NetWare has not awarded it with a licensed status. Without a licensed connection, the client still cannot use essential NetWare services.
An authenticated and Licensed connection allows the client full use of all services and data that the client's user object has been given rights to in the tree. A connection becomes licensed by using an essential NetWare service. If a license is available, the connection becomes licensed. If not, the use of the service is denied. The connection remains unlicensed until a license frees up and an essential service is requested again through the connection.