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.