No Terminal Server client access licenses available for this computer

I had a situation recently when some users tries to connect to the Terminal Server they received the following error message: The remote session was disconnected because there are no Terminal Server client access licenses available for this computer. Please contact the server administrator.

There are many options to workaround this issue. To see more of these workarounds, you can visit Microsoft website. However, I opted for the solution I am going to describe below which works wonderfully.

Note: Please note that this solution requires modification of the system’s registry. So take an extra caution (back up your registry) before proceeding.

Problem: The remote session was disconnected because there are no Terminal Server client access licenses available for this computer. Please contact the server administrator.

Solution: Create a backup of the MSLicensing registry key and its subkeys on the client, and then remove the original key and subkeys by doing the following:

1. On the client, navigate to the following registry subkey:
   HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\MSLicensing.
2. Click MSLicensing.
3. On the Registry menu, click Export Registry File.
4. In the File name box, type mslicensingbackup, and then click Save.
5. On the Edit menu, click Delete, and then click Yes to confirm the deletion of the MSLicensing registry subkey.
6. Close Registry Editor, and then restart the computer.

(Note: If you need to restore this registry key in the future, double-click mslicensingbackup.reg.)

When the client is restarted, the missing registry key is rebuilt.