Resolution:
As noticed in SmartSockets release 6.6.0 RTserver to RTserver connections *are* enforced throughout a cloud. In the event the number of RTserver to RTserver connections exceed the server_count of a particular RTserver's license that RTserver will refuse any further RTserver connections with the following trace message:

TAL-SS-15154-W Maximum number of server connections exceeded. Rejecting server </server_unique_subject_PID>.

In earlier releases of SmartSockets the following procedure was followed:

RTserver does not enforce the maximum number of licensed RTservers that run in a cloud. If the number of running RTservers exceeds the number of licensed RTservers, the RTservers themselves will issue warnings frequently to the RTserver console window and will log them to any trace_file . The only enforced licensing check that RTserver does is to detect if more than the total permissible number of RTclients has connected to a given RTserver. Each RTserver maintains its own RTclient connection license count. If the number of RTclient connections exceeds the RTclient license count the RTclient attempting the connection will be denied. There is no distributed protocol that runs between RTservers to aggregate a set of licenses across a cloud, so the total number of RTclients in the cloud is not tracked, but could be determined by summing the counts for each RTserver in the cloud.