Many programs, especially music related, used different dongles. Most, if not all, uses a PAL/GAL.
The reasons behind this was atleast 3.
PAL/GALs has read protection, you cannot extract the programming very easily.
Since they are logic chips, you can program them to give different output every time, even if the input is the same.
You can program them to co-exist with other dongles/cartridges, thus allowing the user to use more than 1 dongle and more than 1 program without restarting, inserting a different dongle, or having a midi expander or similar.
It does sound like your dongle is broken. I have no idea where you can get that fixed today, or if anyone cracked the dongle system so that you can make a new one.
It should not be impossible to crack the dongles, and there would probably be a market for it aswell, since the makers of cubase and other software using dongles don't want to support it anymore, and wants people to move on to Mac/PC and give them their hardearned money once again.