A sensor licensing system for an intraoral sensor includes an on/off mechanism, a driver and a sensor. The on/off mechanism is coupled to the intraoral sensor and has an encrypted licensing code so that the on/off mechanism turns on and off the intraoral sensor. The driver processes the encrypted license code stored in the sensor memory and determines if license code is expired based on the computer clock, exposure counter or other desired limits. The sensor periodically checks an online server for an updated encrypted license code and stores new license code in sensor memory. The updated license code is created and stored on the server when a new periodic subscription payment is made. The sensor periodically checks and downloads any updated license code. Failure to make a payment will result in no encrypted license code update being created and eventual expiration of the old encrypted license code.