ActiveForms and Design-time Licensing

I received Delphi 3.0 the other day and immediately began experimenting
with ActiveForms.  My first two projects worked great.  The forms/controls
appeared in Internet Explorer 3.0 without any problems.  My third
ActiveForm refused to display, however.  Internet Explorer appeared to be
"installing the component", but the .html page only showed a blank square
with a little red X in it.  

I searched the documentation, Borland web site, and newsgroups for some
insight into this mystery, but to no avail.  Finally, I discovered what the
problem was.  Apparently, I had clicked on "include design-time license" in
the ActiveForm Wizard.  Whenever this option is checked, Internet Explorer
refuses to display the ActiveForm.

I located the initialization section of my control's .PAS file and removed
the license string.  Upon doing this and recompiling/redeploying, my
control worked like a charm.  However, this removed any protection I had
from unauthorized use of my control.

This situation brings the following questions to mind...

1)      Why is the "design-time licensing" preventing the control from
displaying in Internet Explorer?  If the control is downloaded and
displayed in a web page by someone else on the Internet, isn't this
actually occurring at run-time?!?   If so, why is Internet Explorer not
able to display it?

2)      How can you use an ActiveX Form/Control on a web page AND protect your
code from unauthorized use if you have to disable the "design-time
licensing" just to get it to work correctly???

This situation has got me baffled.  If anyone out there could enlighten me,
I would greatly appreciate it.

Thanks in advance!!!