The activation information is based on the user's Machine ID which is generated unique per machine based on a number of factors, including the machine name, itself.
Once the application has been activated, the details are saved in the Registry and under %AppData%.
This is not something you can replicate without the server confirming the activation unless the machine name doesn't change and stays persistent.
Once an activation starts, it sends the Machine ID to our server along with your Payment Code and email. If the number of activations does not exceed the license count for that particular license, the server sends back an Activation Key which is then used to 'unlock' the application. The software records that it was unlocked in the registry along with the encrypted details of the activation.