Many of our current users got it from a good friend such as you. By the way, your name and user ID are stored in your timedata. Whether you download the upgrade is up to you. It depends on your needs. For most users, the upgrades provide enormous benefit.
Updates are free.
Upgrades are new versions with major new features. In the past these have been released after one to two years. Updates are revisions to the same product. Yes, we have designed it that way. Download and install the new version and it will automatically convert your data.