Unable to activate Parallels Desktop Business with a valid license key

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Symptoms

I cannot activate Parallels Desktop Business with a valid license key. The following error message appears:

Fatal error. The operation failed because a fatal error occurred.

or

The operation failed due to an unknown error.

Logs

The following strings can be found in /Library/Logs/parallels.log file:

/License:xxxx:xxxx/ KA server can't activation this license - Another license is already active with the same HWID.
/License:xxxx:xxxx/ Couldn't activate license by key. Error Error on KA server

Cause

The Hardware ID (HWID) of the Mac is already in use by another Parallels Desktop Business license.

Resolution

  1. Quit Parallels Desktop

  2. Open Terminal.

    Terminal is located in Applications > Utilities folder. Also, you can type Terminal in Spotlight to find it.

  3. Run the command below to remove the current license:

    prlsrvctl deactivate-license
    
  4. Open Parallels Desktop, and proceed with activation.

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