This error can occur if the 'FlexNet Licensing Service' is not running on the system. See the attached image.

For the DraftSight® stand-alone license to work correctly, a few services must be running on computer. 

To resolve this issue, follow these steps: 

1. Open the Windows® ‘Services’ app.
2. Locate the ‘FlexNet Licensing Service 64’ service. 
3. Change the ‘Startup type’ to ‘Automatic’.
4. Start the service.