Vincent -
Currently TestStand does not have any features to lock or prevent a sequence file from being read. The only options that you have is to force a license mechanism or protect intellectual property is to more it into a binary code module (DLL, vi, etc).
I should mention that I am not sure that such a locking feature could be complete because of the openness of the TestStand API. For example TestStand cannot prevent simple access to a sequence file and its contents because your code in the sequence file and code modules that the file calls need the API to access the context which includes the file during runtime.
Scott Richardson (NI)
Scott Richardson
https://testeract.com