... this is a zip file and all that is required as per the instructions here is to uncompress this file in the FGLDIR directory (or GREDIR in the case of the Genero Report Writer). To understand what it is replacing, uncompress the zip file in another directory and note what it contains. The important thing is that in the bin directory there will be a newer fglWrt.
After patching the License Controller, if you execute fglWrt -V, you should see that the version number has gone up and should now match the version number of flmprg.
This patching the License Controller is something you will most likely encounter in a development environment. You maybe using the Four Js License Manager to share your development license across many different Genero versions. If you update the Four Js License Manager then you should patch the license controller on the many different Genero versions you have installed so that they can communicate effectively with the newer version of the Four Js License Manager.