There are two kinds of licence key.
USB 'hardkey'
Softkey
Softkeys are tied to the machine they are installed on, and the machine name must not change. Hardkeys can be moved about freely, and will work anywhere the licence driver is installed. As the ConQuest office is currently closed, new hardkeys cannot be generated at this time. Both can be either network or local licences.
With a local licence:
You do not need a connection to the office network
The software must be used by someone actually sat at the machine, remote access will not work
The licence cannot be installed on one machine and used from another
If you have a physical key, you can pass it around between users as required
If you have a softkey, it will only be usable on that machine
With a network licence:
You must be connected to the office network
You can connect remotely to a terminal server or directly to your workstation and use the software
The licence is installed on one machine and accessed from others (and sometimes that machine as well)
Licences will be taken by the first person who connects, they are not assigned to individuals - this can make it more difficult to control who has access or ensure that a particular user has access to the software whenever they need it.