There are actually a couple of different reasons that errors similar to -96,7 might happen:
1. The license manager is in fact not running.
2. There is a firewall blocking communication.
Depending on the operating system, the installation of the license manager is going to be a little bit different. David posted links to manage the license manager itself, but here is a brief breakdown:
Windows: Open LMTools, ensure that there is a service for Exelis products on the Config Services tab, and then select "Start Server" on the Start/Stop/Reread tab. If there is no service listed, try using the "Install a license you have received" option in the license wizard once again, or see the help article above for instructions on how to configure the service manually.
Macintosh: Browse to the /Applications/exelis/idl84/bin directory and issue the command "sudo ./lmgrd_install". If any error messages are encountered, they will be listed in the Apple Console application.
Linux: Browse to /usr/local/exelis/idl84/bin, run the command: "sudo ./lmgrd_install", then "./lmgrd -c /usr/local/exelis/license/license.dat". That should either provide you with text regarding what errors are encountered when starting, or start the license manager (and allow you to open the software once done).
What also might come in handy is how to configure the license file to run a specific port for the vendor daemon so that it can be opened for TCP communication through any firewalls present on the system:
http://www.exelisvis.com/.../ArticleId/1210.aspx
Once that has been assigned, you'll want to restart the license manager and ensure ports 1700 and 1701 (or whichever you've defined) are open for TCP communication.