This error occurs when the LM_LICENSE_FILE variable in Windows is not set properly during installation. To remedy this, set the variable to point to your license file using the following steps under Windows NT/2000 (for Windows 95 or 98, you should edit your autoexec.bat file):
1. right-click on MY Computer
2. choose Properties
3. choose Environment
4. click under User Variables
If you see LM_LICENSE_FILE already defined here, you can append the correct path (with a semi-colon) or remove the current definition (if it is not applicable) and put in the correct path to the license.dat file ($MATLAB\bin\license.dat, where $MATLAB is your root MATLAB directory). Always make sure to add the MATLAB directory at the *beginning* of the variable declaration. If you do not see LM_LICENSE_FILE defined here, you can create it.
For example:
If LM_LICENSE_FILE is listed as a variable and its value is listed as:
c:\temp
then you would edit this value to be
C:\MATLABR12\bin\license.dat;c:\temp
In this example, the root MATLAB directory is C:\MATLABR12. If your root MATLAB directory is different, replace C:\MATLABR12 in the path above with your root MATLAB directory.
If LM_LICENSE_FILE is not defined in this list, create it and give it the correct path value mentioned above.
