There is so much love for Google’s new mobile phone, the G1 or Android phone. A week or two ago, Google announced that they are now accepting paid apps to the app marketplace. But now, we are seeing reports that paid apps cannot be updated.

A Google Mobile Help thread has confirmed reports from a Googler that there is indeed a bug. A G1 paid app user said, “after you purchase a paid and and then try to update it, it doesn’t update. It just says downloading and nothing happens.” This user said that the free apps update fine, but not the paid apps.

Google employee, Alden confirmed the issue saying:

In the iTunes App store, if you purchase an app, all updates to the specific app are free. Currently, there is no way for iPhone App users to be charged for a major or even minor update, without releasing a new app. I assume the same model works for the G1.

Forum discussion at Google Mobile Help.