Simple Android Licensing

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I am about to release a paid app on the market and have used licensing to help secure it. I am currently testing with the white-list and have found that if I set it to licenced it works fine, no problems. If I then turn off wireless and data on my mobile I can only open the app once without it saying that it is not licenced.

So basically, the second time I open my app after turning off all internet access to my phone, it is treated as unlicensed. I thought that using the ServerManagedPolicy you could open the app quite a few times with no internet access? What is going on here?

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You get such behavior because you test it using a developer or test account. When you publish it and users buy it license validity period and retry count will increase.