A license managing apparatus comprises an inputting device, an encrypting
device for encrypting information inputted from the inputting device to
produce encrypted information, and an outputting device for outputting
the encrypted information. The encrypting device encrypts at least
identification information of the game apparatus to be licensed and
license condition information thereof to produce the foregoing encrypted
information. The game apparatus includes an inputting device for
inputting the outputted encrypted information, an encryption decoding
device for decoding the inputted encrypted information, and a controller
for controlling execution of a game program. The game apparatus further
includes a storing device for storing identification information of the
game apparatus, and a storing device for storing internal information.