Simulation waveform editor License Issue

Hi all,

I'm currently using the Quartus 2 V15 and created a schematic file which compiles ok. when attempting to simulate I have the following error:

**** Running the ModelSim simulation ****

c:/altera/15.0/modelsim_ae/win32aloem//vsim -c -do multiplier.do

Unable to checkout a license. Vsim is closing.

** Fatal: Invalid license environment. Application closing.

Unable to checkout a license. Make sure your license file environment variables are set correctly and then run 'lmutil lmdiag' to diagnose the problem.

Modelsim-Altera uses the following environment variables to check the licenses (listed in the order of preference)

1. MGLS_LICENSE_FILE

2. LM_LICENSE_FILE.

Error.

I have looked on the Altera website which indicates I do not need a license. does anyone have any recommendations?