Cannot update apps unless old apple ID is used

When you get a new mac now, I think Apple ties the pre-installed iLife apps to an Apple ID. I think you have basically told Apple that your friend's install of iPhoto is yours. You should have got him to create his Apple ID before tying his copies to the Mac App Store, rather than using your ID.

If I recall correctly it does explain all this to you when you do it, but it'd be easy to click through if you were in the mindset of 'whatever, I just want to update...' because it's an unusual thing.

The short answer is: call Apple. Explain to them (or have your friend explain) you didn't realise that iPhoto (and any other apps with this problem, I think it might also affect Garageband for example) would be tied to your account in this way, they might be able to re-set it.

 

At first login to the Mac App Store on a new Mac the App Store asks you to accept the three apps as yours for that ID. It sounds as though you accepted his apps on your Apple ID, leaving him without ownership of the apps. Since you now technically own the apps your friend would have to repurchase them or, as suggested, you can call Apple Support and plead your case and see if they will reassign the apps.

There are three that you would have accepted: iPhoto, iMovie and GarageBand.