diff --git a/awx/api/views/root.py b/awx/api/views/root.py
index 922041c8b5..44b8cb293b 100644
--- a/awx/api/views/root.py
+++ b/awx/api/views/root.py
@@ -17,6 +17,8 @@ from rest_framework.permissions import AllowAny, IsAuthenticated
 from rest_framework.response import Response
 from rest_framework import status
 
+import requests
+
 from awx.api.generics import APIView
 from awx.main.ha import is_ha_environment
 from awx.main.utils import (
@@ -248,14 +250,39 @@ class ApiV2ConfigView(APIView):
             logger.info(smart_text(u"Invalid JSON submitted for license."),
                         extra=dict(actor=request.user.username))
             return Response({"error": _("Invalid JSON")}, status=status.HTTP_400_BAD_REQUEST)
+
         try:
             from awx.main.utils.common import get_licenser
             license_data = json.loads(data_actual)
+            if license_data.get('rh_password') == '$encrypted$':
+                license_data['rh_password'] = settings.REDHAT_PASSWORD
             license_data_validated = get_licenser(**license_data).validate()
-        except Exception:
-            logger.warning(smart_text(u"Invalid license submitted."),
-                           extra=dict(actor=request.user.username))
-            return Response({"error": _("Invalid License")}, status=status.HTTP_400_BAD_REQUEST)
+            if license_data_validated.get('valid_key') and 'license_key' not in license_data:
+                if license_data.get('rh_username') and license_data.get('rh_password'):
+                    settings.REDHAT_USERNAME = license_data['rh_username']
+                    settings.REDHAT_PASSWORD = license_data['rh_password']
+                license_data = {
+                    "eula_accepted": eula_accepted,
+                    "features": license_data_validated['features'],
+                    "license_type": license_data_validated['license_type'],
+                    "license_date": license_data_validated['license_date'],
+                    "license_key": license_data_validated['license_key'],
+                    "instance_count": license_data_validated['instance_count'],
+                }
+                if license_data_validated.get('trial'):
+                    license_data['trial'] = True
+        except Exception as exc:
+            msg = _("Invalid License")
+            if (
+                isinstance(exc, requests.exceptions.HTTPError) and
+                getattr(getattr(exc, 'response', None), 'status_code', None) == 401
+            ):
+                msg = _("The provided credentials are invalid (HTTP 401).")
+            if isinstance(exc, ValueError) and exc.args:
+                msg = exc.args[0]
+            logger.exception(smart_text(u"Invalid license submitted."),
+                             extra=dict(actor=request.user.username))
+            return Response({"error": msg}, status=status.HTTP_400_BAD_REQUEST)
 
         # If the license is valid, write it to the database.
         if license_data_validated['valid_key']:
diff --git a/awx/main/access.py b/awx/main/access.py
index 1a87eff38a..e9957656de 100644
--- a/awx/main/access.py
+++ b/awx/main/access.py
@@ -317,10 +317,19 @@ class BaseAccess(object):
             validation_info['time_remaining'] = 99999999
             validation_info['grace_period_remaining'] = 99999999
 
+        report_violation = lambda message: logger.error(message)
+
+        if (
+            validation_info.get('trial', False) is True or
+            validation_info['instance_count'] == 10  # basic 10 license
+        ):
+            def report_violation(message):
+                raise PermissionDenied(message)
+
         if check_expiration and validation_info.get('time_remaining', None) is None:
             raise PermissionDenied(_("License is missing."))
-        if check_expiration and validation_info.get("grace_period_remaining") <= 0:
-            raise PermissionDenied(_("License has expired."))
+        elif check_expiration and validation_info.get("grace_period_remaining") <= 0:
+            report_violation(_("License has expired."))
 
         free_instances = validation_info.get('free_instances', 0)
         available_instances = validation_info.get('available_instances', 0)
@@ -328,11 +337,11 @@ class BaseAccess(object):
         if add_host_name:
             host_exists = Host.objects.filter(name=add_host_name).exists()
             if not host_exists and free_instances == 0:
-                raise PermissionDenied(_("License count of %s instances has been reached.") % available_instances)
+                report_violation(_("License count of %s instances has been reached.") % available_instances)
             elif not host_exists and free_instances < 0:
-                raise PermissionDenied(_("License count of %s instances has been exceeded.") % available_instances)
+                report_violation(_("License count of %s instances has been exceeded.") % available_instances)
         elif not add_host_name and free_instances < 0:
-            raise PermissionDenied(_("Host count exceeds available instances."))
+            report_violation(_("Host count exceeds available instances."))
 
     def check_org_host_limit(self, data, add_host_name=None):
         validation_info = get_licenser().validate()
diff --git a/awx/main/management/commands/inventory_import.py b/awx/main/management/commands/inventory_import.py
index 6ae7ba69d5..7a23c1a63f 100644
--- a/awx/main/management/commands/inventory_import.py
+++ b/awx/main/management/commands/inventory_import.py
@@ -919,7 +919,8 @@ class Command(BaseCommand):
         new_count = Host.objects.active_count()
         if time_remaining <= 0 and not license_info.get('demo', False):
             logger.error(LICENSE_EXPIRED_MESSAGE)
-            raise CommandError("License has expired!")
+            if license_info.get('trial', False) is True:
+                raise CommandError("License has expired!")
         # special check for tower-type inventory sources
         # but only if running the plugin
         TOWER_SOURCE_FILES = ['tower.yml', 'tower.yaml']
@@ -936,7 +937,11 @@ class Command(BaseCommand):
                 logger.error(DEMO_LICENSE_MESSAGE % d)
             else:
                 logger.error(LICENSE_MESSAGE % d)
-            raise CommandError('License count exceeded!')
+            if (
+                license_info.get('trial', False) is True or
+                license_info['instance_count'] == 10  # basic 10 license
+            ):
+                raise CommandError('License count exceeded!')
 
     def check_org_host_limit(self):
         license_info = get_licenser().validate()