No, you don't need to pay. Cypress already paid.
However, the license is for firmware that is many years old and Segger will not provide any support if you have problems, even if you offer to pay for support. Check the cost of a new license with them so you know what it might cost you if you run into problems later in the development process.
Thank you for the information Will.
Luckily for us hobbyists support is not anywhere near required. Only wish to get things done with as little effort as possible and may switch to another software package when I see it.