[ejwells]

No, you can't move licenses from a broken iLok to a new iLok. End of that story.
The iLok you're moving licenses FROM has to be sync'd to your account, as does the iLok you're moving them TO.
You'll have to send the broken iLok to them, and they'll place the licenses back in your account, or onto a new iLok, and send the new one back.
The $25 fee has nothing to do with moving licenses from iLok to iLok within your own account.
That's a per license fee for transferring to another person's account.
The sad news is that their will be downtime between now and whenever they get your situation straightened out. So, better to sent it ASAP
I personally have no problem with paying the $30/year zero downtime.
I have 100 licenses on my iLok, and $.30 insurance per asset per year makes sense to me.
Thankfully, I haven't had an iLok issue in the 8 years I've used it.