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What I haven't been able to find info on anywhere is how upgrades to App Store apps will be handled. $20 for v1.0 isn't that big a deal if I know I can get 1.1-1.9 for free (ponying up for v2.0 isn't unreasonable), but if I'd have to pay for each new version, then the price would have to come down by at least half.

While Apple will obviously know that I purchased v1.0, will the App Store be smart enough to have different terms for current license holders as opposed to new purchasers?