I can't really name them, but if you're protecting your software with some dongles developed in Argentina, and they look like this:
your software is not protected AT ALL!
40 usd a piece + 60 usd for the SDK)
Software Protection System® has two methods to protect your programs: 'automatic'and 'Manual Protection'. Manual Protection involves modifying the source code using an API (Application Programming Interface), by inserting function calls to a DLL (Dynamic Link Library) to perform the protection process. On the other hand, the automatic protection does not need to make changes in your source code because it directly protects the executable (exe or dll) adding 'anti-hacking' and 'anti-debugging' routines. Furthermore, the protected application is encrypted to prevent 'reverse engineering'. All this influences your product is protected by an impenetrable fortress for hackers avoiding loss of revenue due to piracy. You can use one or both of the two modes of protection, if you prefer, thereby increasing the security of your system at maximum.
-The Dev's Website
The 'challenge response' API feature is 100% software based, and the physical key is not involved at all.
If you use the 'automated protector', f
ing up the dongle is a trivial task [not much harder than unpacking UPX]. BUT, of course, it has 'an impenetrable fortress for hackers', because it adds ''anti-hacking' and 'anti-debugging' routines' and 'is encrypted to prevent 'reverse engineering''.
A "please don't copy me" tag on the CD's sleeve would be more cost-effective.
Repeat with me... SNAKE OIL