Cubase 4 and 5 Dongle

You can’ t dissolve the license. You bought an update. The update updates your license of the previous version to the license of the new version. Nevertheless you only have one license. That’ s why an update is cheaper than buying the complete package again, in which case you have two licenses…
In your case the other person can not license and run the software without the dongle you are now using to run C 6