Hi,
The auto updater server tries to check the origin server URL agains the license code, and if common subdomains are used, then it will allow the license to remain active (as if it was active on the main domain).
It is a fairly problematic process alltogether, in most cases it works, in others it dont – depending on if the origin can be determined. Determining the origin is a whole other topic, it is a nightmare on it’s own.
I have made a few corrections on the server, but I can’t promise it will recognize the correct origins.
If you are using a staging environment, which is worked on and then pushed to the live, then having it active there is sufficient. License activation is not neccessary for the plugin to function correctly, it is only used for automatic updates.