
I dont know, but I would assume so, as it is the activation of "Transfer" which makes C/M items exportable, or maybe all three have to be ticked. Who knows?
I dug out what I believe to be the relevant passage of the ToS:
"Proprietary Rights
We claim no ownership or control over any Content submitted, posted or displayed by you on or through Kitely Services ("User Generated Content" or "Items"). You or a third party licensor, as appropriate, retain all patent, trademark and copyright to any User Generated Content you submit, post, display, or sell on or through Kitely Services and you are responsible for protecting those rights, as appropriate. By submitting, posting, displaying or selling Content on or through Kitely Services you agree to allow Kitely to handle your User Generated Content in all the ways required to provide the Kitely Services you elected to use. Kitely reserves the right to refuse to accept, post, display, transmit, or sell any User Generated Content in its sole discretion.
You represent and warrant that you have all the rights, power and authority necessary to grant the rights granted herein to any User Generated Content submitted.
You agree that when you add User Generated Content to Kitely Services you implicitly define a license ("Permissions") for what other people are allowed to do with those Items. You agree that when receiving Items from other Users you are only receiving a license to use those Items and you will claim no ownership or control over any copyrights associated with those Items. You agree to abide by the terms of use defined by Permissions. You agree that Permissions define whether the Avatar (as the term is defined below) that acquires an Item may make copies of that Item (has "Copy Permission"), modify that Item (has "Modify Permission") and/or transfer that Item to other Avatars (has "Transfer Permission").
An "Avatar" is a Kitely Account or third-party user account that is (A) capable of using Items; and (B) is capable of having a presence in only one location at a time.
Items delivered by Kitely Market (as the term is defined below) are either explicitly licensed for use outside of Kitely Services (grant you "Export Permission") or are explicitly barred from use outside of Kitely Services (are marked "No-Export"). Items not delivered by Kitely Market have an implicit Export Permission if they (A) have Copy Permission; and (B) have Transfer Permission; and (C) do not contain or use any No-Export items.
You agree that people are allowed to use Items for which they have Export Permission outside Kitely Services using the same copy, modify and/or transfer terms that they have for those Items inside Kitely Service.
You agree that people are allowed to store Items for which they have Export Permission in offline backup files. You agree that if you create a backup file, and it contains any Items that you did not create and do not have Transfer Permission for, then you will not share that file and/or those Items with other people.
You agree that people have an additional right to use Items for which they have Export Permission in one virtual space that runs on their personal computer and is not accessible to any other person, regardless of whether those Items have Copy Permission and/or Transfer Permission.
You may copy, modify, transfer, and/or export Items you create regardless of their implicit Permissions, unless these Items contain and/or use Items that you did not create.
You may define an explicit license for your Items, but it may not remove any of the rights that are granted by the Permissions, and it may not add any rights for use of Items that you did not create.
(note - I deleted the fial paragraph because its just a "blah" about copyrights and trademarks.)
TL;DR - I dont see anything there that pertains to the issue I am addressing. Nothing under "Kitely Market" either.