If you perform VMware OVA to VMware OVA upgrade of System Manager by using Solution Deployment Manager Client, the system retains the licenses. However, you must backup or export the licenses from the older System Manager server.
If you are upgrading other applications by using System Manager Solution Deployment Manager, then Solution Deployment Manager retains the license file. However, if you are upgrading the application to a major release, install the new license file for those applications after the upgrade.
For example, if you are upgrading System Manager and other applications to Release 10.1, Solution Deployment Manager retains the license file, but these license will not be valid. Therefore, install the new license file.