How do I get around license error when creating custom tool?

Discussion created by reneecammarere on Jul 3, 2013
I created a custom geoprocessing function tool according to this link . .
I went through the following instructions in order to create a custom tool in a toolbox, but got the error "You do not have the necessary license to execute the selected tool" when attempting to run the custom tool . . .

1) Register the DLL (in the Debug folder) with ESRIRegAsm utility. ESRIRegAsm.exe is located at, ~:\Program Files\Common Files\ArcGIS\bin folder. Use this example . . . Do the following to register the assembly:
               Desktop�??ESRIRegAsm /p:desktop "C:\Test\MyAssembly.dll"

               Engine�??ESRIRegAsm /p:engine "C:\Test\MyAssembly.dll"

2) Create a custom toolbox in a folder or a geodatabase.
ArcGIS for Desktop users have the option to add the tool to a custom toolbox manually in ArcCatalog, ArcMap, or ArcGlobe. Right-click a custom toolbox, choose Add, click Tool, expand my function factory, select my tool, and click OK. The tool is added to the custom toolbox.