Use ROM Toolbox, select the app in question, scroll on the bottom of the screen over to "break market link".

Works for me every time. The only other thing I'll add is that I have both the Market Feedback Agent & the Market Updater both frozen.

If you've already tried breaking the link, with TiBu or something similar to RTB, I would still give RTB a shot, but if it's still not working go into the settings, applications, system apps, & clear both the cache & the data for the Market itself, then load it back up. I can't imagine why it would still be showing as purchased.

 

Any news on this?

I've tried anything:
-breaking the links with Titanium and Rom Toolbox
-clearing caches and data over and over, for market and all google apps.
-deleting account from phone and logging in again after
clearing the caches/breaking the links and rebooting
-waiting for more than 4 weeks

Well, I have a second account, but this is no reasonable solution. Many of my paid app are immediately quitting after changing the account,
because of missing license. And bought apps can not be transfered from one account to another.
The only thing I didn't tried is downgrading the market.
But I'm using ICS and every time I did something with system apps so far, I got an unstable, unusable system
and had to restore.
So I don't want to touch the market at all...

a bit of bump.. i have a cracked version of an app downloaded from net but android market is showing its updated latest version as purchased but when oi try to update it it says cant download because you haven't purchased it through android market,, however its showing as purchased on market..

what to do?