Hi Scott,
Avid says in the Transfer of ownership the following:

Pro Tools software registration (version 9.0 and above) is non-transferable. Avid does not transfer registered ownership of Pro Tools
standalone software to the new owner. Transfer of iLok authorizations by buyers and sellers can be done using the iLok license Manager.
Transfer of iLok licenses are between the individual parties and are in no way associated with Avid. Avid will only register and support
software purchased by the original owner, and only when purchased as new from an Authorized Avid Dealer.


I don't know that it means the software won't work for the new user. It might mean the new owner won't be able to get an upgrade. I'll have to contact them. I remember it to be very irritating, annoying and frustrating jumping through the iLok hoops. I would not have purchased it if I knew I would have to go through this.
Thanks