mikedocy
To check for this problem go to Administrative Tools/Services/ and see if "Pace License Services" status is  "running".
If not running then that is the problem.  The quick fix is to double click or right click and select Properties then change "Startup Type" from "Automatic" to "Automatic (Delayed Startup)". This causes the Pace service to wait a while before running.
 
 See here for more detailed troubleshooting information: https://www.ilok.com/#!resource/windows_troubleshooting
 

That worked for me.  Mine was set to disabled.

I have been a long time defender of ilok but am in the middle of this very same problem, having purchased a laptop to continue songwriting while caring for my 90 year old mom up in Idaho...Here is exactly the case where I felt ilok was perfect... going to a new computer and not having to laboriously go thru the reauthorization process, like in Kontakt, which took me a few hours, only thanks to the new Native Access, which centralizes the serial numbers... But NOOOOOOO! I'm totally stuck at the moment...given that this stupid License Manager is all screwed up. This is a RIDICULOUS situation to be still happening a year after people started complaining about it...I followed the ilok thread suggestions yesterday and was able to use Ozone to process a song I'd been working on but then last night I rebooted and now have the same thing happening.

This problem should have been rectified by now. While I've not had this problem with my desktop rig when migrating to W10, I do now! F'um...

Will try again to fix this issue... arrrrrg! Ruined my evening last night.

Once again, CW forums to the rescue! I was banging my head against the wall about this, I'm not very iLok-savvy having scrupulously avoided it for years but then a few sweet deals on things that required it led me down the garden path (no physical iLok here though). Everything was relatively smooth until I picked up the AIR complete bundle for a song (well, a figurative song anyway), having demo'd a couple of the synths, and started installing its various other bits. Suddenly iLok is down for the count, and no amount of reinstalling, rebooting, uninstalling (rinse and repeat) seemed to be doing anything.
 
Google the error message... first hit is this thread... problem solved. Boom. Gotta love that. Thanks folks!
 
Hopefully the Air stuff is worth the effort in the end. I particularly like Loom, and I've heard good things about Transfuser...

Wow! Having the same problem on Christmas morning. It worked! Thanks!

I always check to make sure the ILM is working right after every new plug I install...whether it is an iLok plug or not. Plus I go back and check the services after every new Win10 update. I don't know why they cannot fix this problem. But at least I can. Sheesh.

To check for this problem go to Administrative Tools/Services/ and see if "Pace License Services" status is  "running".
If not running then that is the problem.  The quick fix is to double click or right click and select Properties then change "Startup Type" from "Automatic" to "Automatic (Delayed Startup)". This causes the Pace service to wait a while before running.
 
This fixed it.

mikedocy
Yes, Sycraft. There seems to be another service (that is slow to get started) that ILM waits for.
If ILM doesn't get the needed service in time it doesn't run and you get VST authorization errors.
 
To check for this problem go to Administrative Tools/Services/ and see if "Pace License Services" status is  "running".
If not running then that is the problem.
The quick fix is to double click or right click and select Properties then change "Startup Type" from "Automatic" to "Automatic (Delayed Startup)". This causes the Pace service to wait a while before running.
 
I have no idea what service(s) Pace was waiting for. I could not find any dependencies for Pace.
My guess it that either the graphics card was calling home checking for updates or Microsoft was checking/updating and it caused Pace to time out and not run.
 
See here for more detailed troubleshooting information: https://www.ilok.com/#!resource/windows_troubleshooting
 
 

Thanks and hallefreakinlujah!
 
I still have no idea what caused ilok's massive failure but I know what to do in the future.
 
I just wish Ilok wouldn't provide us with an unwanted and unwarranted Indiana Jones and the Mystery of Malfunctioning Software experience.
 
 

Amateur tip (I'm no pro)...
 
You will need to reset the PACE startup to "Automatic - Delayed" or "Automatic (Trigger Start)", depending on your Windows version, every time you update the iLok Manager. It gets, or used to get, reset to "Automatic" by the installer. With the latest version of Win10, with the new "Trigger Start", I don't know what happens on install. I'll have to check it after the next iLok Manager update.