We (CSIRO) lease a licence sevice from Concept Software Inc. (https://www.softwarekey.com/) The licence server is securely located in the U.S.A.
To clarify: The licence server is not something that you have to set up. All TSG 8 customers access the same server.
TSG accesses licence-server web services over the internet, using HTTPS and HTTP protocols.
If your PC accesses the internet via a proxy then your proxy service may need to be configured to grant access to https://secure.softwarekey.com on ports 443 (HTTPS) and 80 (HTTP).