(1) Where a recording of a performance in electronic form has been purchased on terms which, expressly or impliedly or by virtue of any rule of law, allows the purchaser to make further recordings in connection with his or her use of the recording, then, in the absence of any express terms—
(a) prohibiting the transfer of the recording by the purchaser, imposing obligations which continue after a transfer, prohibiting the assignment of any consent or terminating any consent on a transfer; or
(b) providing for the terms on which a transferee may do the things which the purchaser was permitted to do,
anything which the purchaser was allowed to do may also be done by a transferee without infringement of the rights conferred by this Part, but any recording made by the purchaser which is not also transferred shall be treated as an illicit recording for all purposes after the transfer.
(2) Subsection (1) also applies where the original purchased recording is no longer usable and what is transferred is a further copy used in its place.
(3) This section also applies on a subsequent transfer, with the substitution for references in subsection (1) to the purchaser by references to the subsequent transferor.
(4) This section does not apply in relation to a recording purchased before the commencement of this Act.