diff --git a/src/middlewared/middlewared/plugins/virt/global.py b/src/middlewared/middlewared/plugins/virt/global.py
index 394e03bdcdbfd..62bc51af0c6aa 100644
--- a/src/middlewared/middlewared/plugins/virt/global.py
+++ b/src/middlewared/middlewared/plugins/virt/global.py
@@ -69,6 +69,19 @@ async def extend(self, data):
             data['state'] = Status.INITIALIZING.value
         return data
 
+    @private
+    async def license_active(self):
+        """
+        If this is iX enterprise hardware and has NOT been licensed to run virt plugin
+        then this will return False, otherwise this will return true.
+        """
+        can_run_virt = True
+        if await self.middleware.call('system.is_enterprise'):
+            license_ = await self.middleware.call('system.license')
+            can_run_virt = license_ is not None and 'JAILS' in license_['features']
+
+        return can_run_virt
+
     @private
     async def validate(self, new: dict, schema_name: str, verrors: ValidationErrors):
 
@@ -88,6 +101,9 @@ async def validate(self, new: dict, schema_name: str, verrors: ValidationErrors)
         if pool == POOL_DISABLED:
             new['pool'] = None
 
+        if pool and not await self.license_active():
+            verrors.add(f'{schema_name}.pool', 'System is not licensed to run virtualization')
+
     @api_method(VirtGlobalUpdateArgs, VirtGlobalUpdateResult)
     @job()
     async def do_update(self, job, data):