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Just FYI. When I checking lu.InstallationIsValid(); on local machine with no internet connection, methos always returns true, no matter what the key is. Customers oftet do application testing on localhost, so they easily can get full version by closing internet connection and entering any registration key.
This is something that i've also raised but have not had any feedback on. I would really like to see this strengthened in a new release.
The LicenceMasterClient assembly (Dotcom.Modules.LicenceMaster.Client.dll) that ships with Licence Master v1.1.1 introduces a new method to deal with this situation on the LicensingUtility class. The method is CanConnect(). Your application can call this to determine whether a connection to the licence server can be made, and can then choose its own response accordingly.
Note that the InstallationValid() and GetInstallationStatus() methods have not changed behaviour to avoid breaking existing integrations.