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In order to understand the process better, an explanation of how registration works is needed. There are three methods by which one can register:
Activating a product ID creates an active subscription in your RHN account. Once you have already activated the subscription via methods 1 0r 2, do not enter the product ID during the up2date process. Instead, choose the option: "Use one of my existing, active subscriptions". This will register your system and associate it with the already active subscription in your Red Hat Network account.
Note: If you have registered another system / installation of Red Hat Enterprise Linux previously using this product ID, you will need to delete that profile from your Red Hat Network account before it can become available for use by your current machine.