This module extends Domain Access (DA) functionality to taxonomy objects. It makes taxonomy terms dependent on domain access rules like nodes. In practice, it means that term editing forms are extended by new options for choosing domains where term must be published. This options block is identical to the block for nodes from DA, but have some additional features for allowing inheritance of domain rights to child nodes or terms.
And when you create nodes with term which have assigned domain right, than term right inherits to this new nodes.
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