Code Obfuscation

Other answers here work fine, but AES is a more secure and up-to-date encryption algorithm. This is a class that I obtained a few years ago to perform AES encryption that I have modified over time to be more friendly for web applications (e,g. I've built Encrypt/Decrypt methods that work with URL-friendly string). It also has the methods that work with byte arrays.

NOTE: you should use different values in the Key (32 bytes) and Vector (16 bytes) arrays! You wouldn't want someone to figure out your keys by just assuming that you used this code as-is! All you have to do is change some of the numbers (must be <= 255) in the Key and Vector arrays (I left one invalid value in the Vector array to make sure you do this...). You can use https://www.random.org/bytes/ to generate a new set easily:

• generate Key
• generate Vector

Using it is easy: just instantiate the class and then call (usually) EncryptToString(string StringToEncrypt) and DecryptString(string StringToDecrypt) as methods. It couldn't be any easier (or more secure) once you have this class in place.

using System;
using System.Data;
using System.Security.Cryptography;
using System.IO;


public class SimpleAES
{
    // Change these keys
    private byte[] Key = __Replace_Me__({ 123, 217, 19, 11, 24, 26, 85, 45, 114, 184, 27, 162, 37, 112, 222, 209, 241, 24, 175, 144, 173, 53, 196, 29, 24, 26, 17, 218, 131, 236, 53, 209 });

    // a hardcoded IV should not be used for production AES-CBC code
    // IVs should be unpredictable per ciphertext
    private byte[] Vector = __Replace_Me__({ 146, 64, 191, 111, 23, 3, 113, 119, 231, 121, 2521, 112, 79, 32, 114, 156 });


    private ICryptoTransform EncryptorTransform, DecryptorTransform;
    private System.Text.UTF8Encoding UTFEncoder;

    public SimpleAES()
    {
        //This is our encryption method
        RijndaelManaged rm = new RijndaelManaged();

        //Create an encryptor and a decryptor using our encryption method, key, and vector.
        EncryptorTransform = rm.CreateEncryptor(this.Key, this.Vector);
        DecryptorTransform = rm.CreateDecryptor(this.Key, this.Vector);

        //Used to translate bytes to text and vice versa
        UTFEncoder = new System.Text.UTF8Encoding();
    }

    /// -------------- Two Utility Methods (not used but may be useful) -----------
    /// Generates an encryption key.
    static public byte[] GenerateEncryptionKey()
    {
        //Generate a Key.
        RijndaelManaged rm = new RijndaelManaged();
        rm.GenerateKey();
        return rm.Key;
    }

    /// Generates a unique encryption vector
    static public byte[] GenerateEncryptionVector()
    {
        //Generate a Vector
        RijndaelManaged rm = new RijndaelManaged();
        rm.GenerateIV();
        return rm.IV;
    }


    /// ----------- The commonly used methods ------------------------------    
    /// Encrypt some text and return a string suitable for passing in a URL.
    public string EncryptToString(string TextValue)
    {
        return ByteArrToString(Encrypt(TextValue));
    }

    /// Encrypt some text and return an encrypted byte array.
    public byte[] Encrypt(string TextValue)
    {
        //Translates our text value into a byte array.
        Byte[] bytes = UTFEncoder.GetBytes(TextValue);

        //Used to stream the data in and out of the CryptoStream.
        MemoryStream memoryStream = new MemoryStream();

        /*
         * We will have to write the unencrypted bytes to the stream,
         * then read the encrypted result back from the stream.
         */
        #region Write the decrypted value to the encryption stream
        CryptoStream cs = new CryptoStream(memoryStream, EncryptorTransform, CryptoStreamMode.Write);
        cs.Write(bytes, 0, bytes.Length);
        cs.FlushFinalBlock();
        #endregion

        #region Read encrypted value back out of the stream
        memoryStream.Position = 0;
        byte[] encrypted = new byte[memoryStream.Length];
        memoryStream.Read(encrypted, 0, encrypted.Length);
        #endregion

        //Clean up.
        cs.Close();
        memoryStream.Close();

        return encrypted;
    }

    /// The other side: Decryption methods
    public string DecryptString(string EncryptedString)
    {
        return Decrypt(StrToByteArray(EncryptedString));
    }

    /// Decryption when working with byte arrays.    
    public string Decrypt(byte[] EncryptedValue)
    {
        #region Write the encrypted value to the decryption stream
        MemoryStream encryptedStream = new MemoryStream();
        CryptoStream decryptStream = new CryptoStream(encryptedStream, DecryptorTransform, CryptoStreamMode.Write);
        decryptStream.Write(EncryptedValue, 0, EncryptedValue.Length);
        decryptStream.FlushFinalBlock();
        #endregion

        #region Read the decrypted value from the stream.
        encryptedStream.Position = 0;
        Byte[] decryptedBytes = new Byte[encryptedStream.Length];
        encryptedStream.Read(decryptedBytes, 0, decryptedBytes.Length);
        encryptedStream.Close();
        #endregion
        return UTFEncoder.GetString(decryptedBytes);
    }

    /// Convert a string to a byte array.  NOTE: Normally we'd create a Byte Array from a string using an ASCII encoding (like so).
    //      System.Text.ASCIIEncoding encoding = new System.Text.ASCIIEncoding();
    //      return encoding.GetBytes(str);
    // However, this results in character values that cannot be passed in a URL.  So, instead, I just
    // lay out all of the byte values in a long string of numbers (three per - must pad numbers less than 100).
    public byte[] StrToByteArray(string str)
    {
        if (str.Length == 0)
            throw new Exception("Invalid string value in StrToByteArray");

        byte val;
        byte[] byteArr = new byte[str.Length / 3];
        int i = 0;
        int j = 0;
        do
        {
            val = byte.Parse(str.Substring(i, 3));
            byteArr[j++] = val;
            i += 3;
        }
        while (i < str.Length);
        return byteArr;
    }

    // Same comment as above.  Normally the conversion would use an ASCII encoding in the other direction:
    //      System.Text.ASCIIEncoding enc = new System.Text.ASCIIEncoding();
    //      return enc.GetString(byteArr);    
    public string ByteArrToString(byte[] byteArr)
    {
        byte val;
        string tempStr = "";
        for (int i = 0; i <= byteArr.GetUpperBound(0); i++)
        {
            val = byteArr[i];
            if (val < (byte)10)
                tempStr += "00" + val.ToString();
            else if (val < (byte)100)
                tempStr += "0" + val.ToString();
            else
                tempStr += val.ToString();
        }
        return tempStr;
    }
}

You can't.

There are steps you can take to make it a little more difficult, but ultimately any executable on the local machine is crackable. Eventually, that code has to be converted into native machine code and every application that is runnable is vulnerable.

What you want to do is just make it difficult enough to crack to make it not worth peoples' trouble.

Some suggestions I have for you to help protect your application:

• Obfuscate your code. Dotfuscator has a free edition and comes with Visual Studio.
• Use public/private key or asymmetric encryption to generate your product licenses. This ensures that only you can generate your license codes. Even if your application is cracked, you can be sure that they won't be releasing a key generator for your application, because it is impossible to reverse the key generating algorithm.
• Use a third-party packer to pack your .NET executable into an encrypted Win32 wrapper application. Themida is one of the better ones. This stops people from reflecting your application in .NET Reflector and makes it a pain to unpack for reversing.
• Write your own custom packer. If the third-party packers are too expensive, consider writing your own. Sometimes custom packers can be very effective, because there aren't well published methods on how to unpack them. The tutorial How to write your own packer gives a ton of good information on writing your own Win32 packer.

Ultimately though, if people want your application cracked they will. Look at all the commercial software out there that has a vast amount of resources to protect their applications and yet they are cracked before the applications are even released to the public.

A skilled reverse engineer can fire up IDA-Pro and slice through your application like butter no matter what you do. A packed application can be unpacked and obfuscation only prevents it from making it a walk in the park. All your hard work with your complex license code can be undone with a single byte patch.

You just need to accept that there is a very real chance people are going to pirate your software. There are some people who are never going to pay for your application no matter what and these are the people you don't need to worry about.

There are however, many businesses out there who would never risk a lawsuit and happily buy software licenses and many computer users who either don't want to risk it, find it wrong or are not tech savvy enough to pirate. These are your true customers, and you should focus your efforts on providing them with a good user experience and ignore the people cracking your software.

I've had my application pirated before, and I took it as a personal affront. Here I was, a small-time developer, pouring my heart and soul into an application and these people had the gall to pirate from me?! They were taking money directly from my pocket!

I immediately added in a bunch of draconian DRM code and attempted to sabotage any person using an illegitimate or cracked copy. I should of course have been working on making my application better instead of trying to stop the inevitable. Not only that, but I was hurting my true customers will all these extra protections I was putting in.

After a long battle I realized I was fighting the tides and all this time wasted was for naught. I took out all the phone-home code except for the barebones license functions and never looked back.