For Series 700/800 machines running HP-UX 10.20 or 11.00, this is no
longer an issue, since HP is giving away unlimited user licenses!
Simply go to <http://software.hp.com/> and search for "unlimited license".
Then, download the UnlimUserLic bundle, and install it. No more 2-user
limit!

An unlimited license is included with 11.11 and later.

For earlier HP-UX releases, there are several fundamental things to
remember about HP-UX licensing:

  o Display console counts as one user
  o Each ASCII terminal counts as a user, regardless of how it is
    connected
  o The LAN connection counts as one user

ASCII Terminals
===============
The simple rule to remember is any ASCII terminal that is logged in
counts as a user.

ASCII terminal connections can come in several different forms:
  o Direct-connected via a serial terminal multiplexer
  o Connected via Data Terminal Concentrators (DTCs) or via
    terminal servers
  o Personal Computers (PCs) acting in terminal emulation mode,
    whether connected via serial line or via Local Area Network (LAN)

X-terminals and workstations
============================
When a customer buys an X-terminal or workstation from HP or from
another vendor, HP acknowledges that the customer has also bought a
single UNIX license-to-use.

Therefore, the customer has the right to an unlimited number of logins and
terminal windows _over_the_LAN_ to a Series 700 or Series 800 from either
X-terminals or workstations. These logins can be via X terminal windows
(_hpterm_ and _xterm_), _telnet_, _rlogin_, or other means.

PC's that use X-terminal emulation software such as XView each count the
same as an X terminal. This is because the PC essentially becomes an
X-terminal when it is running the X server software. Therefore, when a PC
is running an X-terminal emulator, the PC has the right to an unlimited
number of logins to an HP-UX system.

To purchase license upgrades for HP-UX 10.10 and earlier, go to
<http://software.hp.com/> and search for "operating license upgrade".
You'll be provided with a link to a reseller from which you can purchase
upgrades.