There is a process for going to 11.1, you have to go to 11.0.4.3 first. But after that its just like normal. If you look at the upgrade doco it mentions the reasons why, i just cant remember off the top of my head.
You shouldn't as you are already on 11. licenses should already be for 11, much like 10.0 and 10.1 you didn't need new licenses for that when upgrading.
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