You need to insert the license as you have received it. This means also with the domain name,servers and product, expiration. Please make sure you are entering license for appropriate version (2.x, 3.x, 4.x, etc.) and that there are no white spaces or lines.
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The most common cause for this error that I have come across is when copy/pasting a license from email, word docs or other odd sources that insert additional line breaks into the license key.
A Kentico license should have 5 lines of text in total.
Line 1: DOMAIN:yourdomain.com
Line 2: PRODUCT:CX12 (This identifies the Kentico version i.e. Kentico 12)
Line 3: EXPIRATION:00000000 (Does this key expire, and when)
Line 4: SERVERS:1 (How many servers does the license cover)
Line 5: ... This line contains the license key. It usually looks like a Base64 encoded string and should contain no line breaks.
Putting it all together (Note below shows the format but is not a real license):
DOMAIN:yourdomain.com
PRODUCT:CX12
EXPIRATION:00000000
SERVERS:1
c2RmbGpsa2l3ZSBsa2lqd2Vmc2wgc29pZWQgZnN3aWRodmZrbHNqaGRmbGFranNoZGEgIGF1aCBnZmxrc2poZCBzIHNhaCBkZmFoc2pkIGFzZGYgaHNhZCBmc2prZCBoZmthc2pkaCBmYWpzaCBkZmEgIGFzamRoIGZramFzaGQgamFzaGQgIGFsa2QgaGZrbGFzamQgaGxrc2FkaiBoc2EgaHMgaGFzZCBoc2FkaCBsa2Fqc2hkIGZhanNoIGRhc2ggZGhzYWRrIGhzZCBoZmFzIGpoYSAgaGtsc2FkaGYgbGthaHNkIGxraGFzbGRraGpmIGFrc2poZGtsYXMgYSA=
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