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From http://forums.cgsociety.org/showpost.php?p=5257169&postcount=252 :
[INDENT]By default, new licenses will be dongleless.
Existing licenses that are already on a dongle will stay on a dongle.
The dongleless system (known as SLP) is basically what was being used for Foundation and XSI Student/Teacher.
SLP is streamlined in the sense that if you are connected to the Internet, you can just start up the License Manager and activate your license (or deactivate it). Everything happens beneath the covers (by everything, I mean the LicMgr takes care of generating the request code, sending it to softimage.com, getting the license key file back, and installing the license key).
The ability to deactivate allows you to move your license to another computer.
You should also deactivate your license before doing anything like reinstalling your OS.
Then, after you finish upgrading your system, you can re-activate the license.[/INDENT]
You can read all about the licensing in v7 here:
http://softimage.wiki.avid.com/index.php?title=Category:Licensing
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