So does Microsoft, so does Adobe, so does Nuance, and on and on and on. They seem to achieve this without constantly checking home.
Their option is to use a "fingerprint" regime. Change your PC, sometimes too subtly for many people to notice, like adding a USB drive, and the software thinks, "uh oh, a pirate". Then, and only then, it forces users to check in and reactivate their software.
I suspect that X1 has purchased this technology from a third party. Time to send them back to the drawing board?
I'm afraid I'm not likely to continue to recommend X1 to other people while this regime is in place.
