The ip2country database is taken from ip-to-country.webhosting.info/
They are releasing the updates on a daily basis, but the one the JoomlaWatch is based on is from October 2007.
It's free, but registration is required there. I'm not sure if this will help you, because these ip2country resolving is not 100% accurate. For instance - the www.ip2country.com
website resolved my IP as Netherlands, what is false.
When you'll register there, all you need to do, is just to replace the jos_joomlawatch_ip2c table with the CSV file provided.
Please let me know if it helped, that I can include for all the users. Thank you.