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Today software has already become the critical e-assets integrated with valuable intellectual property, such as functions, processes or secrets, etc. The problem is that software, especially written in intermediate languages (Java, .NET, etc) are easy to be decompiled for reverse engineering, so the proprietary business logic, core algorithm implementation, software licensing code, and copy protection mechanisms of software are more susceptible to malicious reuse. Anyone with special decompile or reverse engineering tools such as .NET Reflect, JAD can exploit the vulnerabilities, steal unique ideas, bypass license checks, etc. In this paper we describe a key hiding based software encryption method to protect the intellectual and copy rights for software.