A system and method controls access to hardware and software functions by employing a codified electronic license that does not generally require application code modification. In response to customer purchases, highly configurable XML licenses containing lists of allowable CLI commands are generated, digitally signed, and transmitted to various customer systems over a network. The customer systems authenticate the licenses, extract the CLI command lists, and register the specified commands with a command processor internal to the customers' systems. Only registered commands are allowed to execute, preventing unlicensed hardware and software from operating on the system.