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The blog article "How to Navigate the World of Software Upgrades, Patches, and Trials" explains the difference between patches (free of charge) and upgrades (for a fee). This example quickly shows the difference between an upgrade and a patch:
Upgrade Patch Major version change, such as 1.3 to 2.0
Minor version change, such as 1.3 to 1.4
Typically requires purchase for a fee
Free of charge