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I did have a WLSE appliance which runs on version 1.3. I'm thinking of upgrade it to version 2.0 or even 2.5. How is the licensing count? It's a free upgrade?
There is no licensing needed for doing the upgrade. All you need to do is download the 2.0/2.5 upgrade files from CCO:
http://www.cisco.com/cgi-bin/tablebuild.pl/wlan-sol-eng and follow the respective readme files for doing the upgrade.
Note: You cannot directly upgrade from 1.3 to 2.5. In your case, the upgrade path would be from 1.3->2.0 and then from 2.0->2.5