Do upgrade/update seats replace existing seats?

If during the update or upgrade process you are provided with a new serial number, then this update *replaces* the previous entitlement.

You must delete the previous FLEXnet license key from all relevant computers and license servers as a condition of receiving the update/upgrade. This is because your new license is a replacement seat, not an additional seat, and acquisition of the new license automatically terminates the old one. Use of the old FLEXnet license key in that situation is not authorized by ARM or its licensors. If you instead require an extra seat rather than simply upgrading/updating your existing FLEXnet license key to enable the latest version, then you will first need to purchase a new seat licence (not an update or upgrade). Quotations for new seats are available upon request from ARM or your local ARM authorized reseller.

Note that ARM FLEXnet license keys are backwards compatible - thus a license for RVDS 4.0 will also enable RVDS 3.1. For more details please see FAQ "What version of the tools will an RVDS license enable?".