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Here's what Microsoft TechNet has to say:
"The License Logging service is a tool that was originally designed to help customers manage licenses for Microsoft server products that are licensed in the Server Client Access License (CAL) model. By default, the License Logging service is disabled in Microsoft Windows Server 2003. Because of original design constraints and evolving license terms and conditions, the License Logging service cannot provide an accurate view of the total number of CALs that are purchased as compared to the total number of CALs that are used on a single server or across the enterprise. The CALs that are reported by the License Logging service may conflict with the interpretation of the End User License Agreement (EULA) and with Product Usage Rights (PUR). The License Logging service will not be included in future versions of the Windows operating system."
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