Licenses can be locked if they are flagged in our system as having contravened Envato licensing. In particular this would mean the use of the same license on multiple live websites. For multiple different live websites, each should have its own license. When a license is locked, automatic updates will not work and it cannot be used to register a new website.
If your license has been locked you can request that it be unlocked via the unlock license page on My Avada. Note, that in order to do that you should first sign up for a My Avada account and ensure the license has been added to your account via the licenses page.