That's not how I read that statement. "Virtual Fashion [the company/service] is an Internet-based online service that allows you to use the Virtual Fashion Works software [the software you buy] when you subscribe and pay a fee [the purchase cost] as indicated by the terms and conditions of your purchase. [...] While your license is active and paid for you are entitled to all updates, upgrades and use of the community included as part of the service." To me, that says that you buy Virtual Fashion Works and that grants you a one year subscription to Virtual Fashion the service, which includes updates and upgrades to the VFW software. In short, you buy it once and get a service which means you can have free upgrades for a year, if and when they become available. Pretty standard software stuff, really. "Software" and "service" are not equivalent here.