JLCooper MCS3 USB - Manual (Page 26)

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To Make the Wheel or Ring Emulate a Mouse
The wheel and ring emulates a mouse by moving the pointer
either horizontal or vertical.
There are three possible ways that the wheel relates to the
mouse button, called Move, Drag, and Scroll.
Move
The pointer moves without any click.
Drag
Rotating the wheel automatically causes a click as if the mouse
button were being held mouse down. If the pointer is
positioned over a movable object, such as a window or icon,
then rotating the wheel will drag the object. The mouse click is
automatically released shortly after the user stops turning the
wheel.
Scroll
This is a pointer move that begins with a mouse-down, just like
a drag.
Only in this case, the mouse does not automatically "unclick"
(mouse-up) after the user stops turning the wheel.
Rather, the mouse-up occurs when the wheel is rotated back to
its original starting point, where the mouse-down first
occurred.
The mouse-up also occurs when any key is pressed.
This is useful for playing back audio and video in applications
that feature a small scroll bar for playback. The user can initiate
forward or backward playback by turning the wheel a little and
then taking their hands off the wheel, without having to
continuously rotate the wheel.
Since the Ring has a center detent, it is naturally suited for the
"scroll" function. (It cannot be assigned to Move or Drag.)