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Most updates are free.
It is always a good idea to soft-reset your device before updating software. If the software you want to update is in memory when you run the installer, the update might not appear until you do a soft-reset, or you may receive an error message. You can install over the previous version. Once you have entered your registration code, you do not need to do so again. Also, it may appear that you've installed demo software, but the demo and the full version are one and the same.