s 294 Transfer of electronic copy of material
294.—(1) This section applies where —(a) an electronic copy of any material (called in this section the first copy) is purchased on or after 15 December 1999; and (b) the terms of purchase (whether expressed or implied), or any rule of law, allow the purchaser to do any of the following acts in connection with the use of the copy:(i) make a copy of the material; (ii) make an adaptation of the material; (iii) make a copy of an adaptation of the material. (2) If the purchaser transfers the first copy, any act done by the transferee in relation to the copy is a permitted use of a work or protected performance if —(a) the purchaser is allowed to do the act; and (b) there is no express term that —(i) prohibits the purchaser from transferring the copy; (ii) imposes an obligation on the purchaser or transferee that continues after the transfer; (iii) prohibits the assignment of any licence in relation to the material; (iv) terminates any licence in relation to the material if the copy is transferred; or (v) regulates the terms on which the transferee may do the acts that the purchaser is allowed to do. (3) However, after the transfer, any copy (including the first copy), adaptation or copy of an adaptation that is retained by the purchaser is to be treated as an infringing copy of the work or performance, as the case may be. (4) Subsections (2) and (3) also apply where the first copy is unusable and a further copy is transferred instead. (5) Subsections (2), (3) and (4) also apply to a subsequent transfer, and for this purpose a reference to the purchaser in subsections (2) and (3) is to be read as a reference to the subsequent transferor.