Depending on the type of the license, you need to provide it to the corresponding server running its corresponding service[1]. For example, Recording ch or (Live) Streaming ch/server licenses have to be provided to the server running ISS Admin service. for Backup ch license, you provide it to each Backup server.
There are 3 different groups of licenses available for ISS v1.7.0.
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Admin group
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Recording ch license
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(Live) Streaming ch license
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(Live) Streaming server license
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Backup group
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Backup ch license
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Federation group
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Federation[1] ch license
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[1] Typically, you will be plugging the wibu key license to the server running the corresponding service.