In a Check Point environment, the Security Management Server (SMS) serves as the central point for managing licenses and service contracts. The SMS connects to the Check Point User Center to download the latest contract information. Once the valid service contracts are stored on the SMS, they are then automatically distributed to the managed Security Gateways. This architecture ensures centralized control and allows the gateways to validate their software blade entitlements and fetch necessary updates, such as signatures for the Threat Prevention blades.

A. Contracts are managed centrally on the Security Management Server and then distributed to the gateways; they are not stored only on the gateways.

B. Service contracts are digital files managed electronically through the Check Point User Center and SmartConsole, not provided on paper.

C. While contracts are stored and required on the SMS, they are also downloaded to the Security Gateways so the gateways can validate their services and download updates.

1. Check Point R81 Security Management Administration Guide, Chapter "Managing Licenses and Contracts", Section "Updating Contracts".

Quote/Paraphrase: The guide states, "The Security Management Server periodically connects to the Check Point User Center to get updated contract and license information. The Security Management Server then automatically distributes the updated information to the managed Security Gateways." This confirms the process where the SMS must first have the contract before it can be sent to a gateway.

2. Check Point SecureKnowledge (SK) Article sk94508: "How to update Contract File on Security Management Server / Multi-Domain Server".

Reference: This document outlines the procedures for updating the contract file directly on the management server, either automatically or manually. This reinforces the role of the SMS as the primary repository for contract information before it is distributed to other components.

3. Check Point SecureKnowledge (SK) Article sk110548: "How to update Contract File on Security Gateway / Cluster Member".

Reference: This article details how a gateway's contract file is updated. It explicitly mentions, "The recommended way to update the contract file on a Security Gateway / Cluster Member is to update it on its Security Management Server / Domain Management Server... and then install the policy." This directly supports the answer that the contract must be on the SMS first.