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Notes on injection moulding: part design, tooling and cost

Front page / Who owns the injection mould, and what should a tooling agreement cover?

Who owns the injection mould, and what should a tooling agreement cover?

Paying for a mould does not automatically settle who controls it. What decides it is usually the written agreement, together with any state laws that give a moulder rights over moulds in its possession. Buyer-written tooling terms typically say the buyer owns the tool, that the moulder holds it on a bailment basis, that it must be tagged, maintained and insured, and that the buyer can take it back on request. Some US states also give moulders a lien on a customer's mould for unpaid work. This page is educational and is not legal advice; have a lawyer review real agreements.

What a published buyer tooling contract contains

Nexteer's public tooling terms and conditions are one example of the clauses large buyers use:

TopicHow the published terms handle it
Titletooling the buyer furnishes or pays for remains buyer property, held by the supplier on a bailment basis; replacement parts and improvements become buyer property once fitted
Liensthe supplier waives liens on buyer property
Markinga physical asset tag with the buyer's part number, attached with a rivet or screw rather than adhesive, with photographs of the tag and of the mould open and closed
Carethe supplier inspects, maintains and repairs buyer property at its own expense and marks it as buyer property
Returnthe buyer may retake possession or request return at any time, with or without reason
Scrappingthe supplier pays for replacement if buyer tooling is scrapped in error

What state molder's lien laws say

  • Michigan (Act 155 of 1981). MCL 445.618 gives a molder a lien, dependent on possession, on a customer's die, mold or form for amounts due for plastic fabrication work done with it, and lets the molder keep it until paid. MCL 445.612 says that, unless otherwise agreed in writing, if the customer does not claim the mould within 3 years of its last use, the molder may take title for the purpose of destroying it. MCL 445.613 requires written notice by registered mail first.
  • Ohio (ORC 1333.31). A molder has a lien on a customer's die, mold, pattern or form in its possession for fabrication work or for making or improving the tool. If payment is 60 days overdue, the molder may send a final notice by certified mail. If the amount is not paid within 30 days of that notice, the statute sets out what the molder may then do.

Other states have their own rules, and a written agreement can change some of these defaults. Michigan's 3-year rule, for example, applies "unless otherwise agreed in writing".

Points to settle in writing

  1. Who holds title, and from when: on order, on each payment, or on final payment.
  2. Who owns the design data: mould drawings, CAD and electrode files.
  3. Tagging, with photographs, and a list of all inserts and spare parts.
  4. Who pays for routine maintenance, wear parts and repairs, and who decides when a repair is needed.
  5. Insurance, and who carries it while the mould is at the moulder's plant.
  6. How and when you can take the mould back, and how much notice is needed.
  7. What happens to an idle mould, including storage terms and notice before scrapping.
  8. Whether the moulder waives any lien on the mould.

Educational summary of public statutes and a published contract example. It is not legal advice and does not describe any company's practices beyond the quoted document.

Questions buyers ask

If I paid in full, can I just collect the mould?

That depends on your agreement and any amounts still owed for parts. Under the lien laws above, unpaid fabrication work can let a moulder hold the tool.

Does the mould maker or the moulder own it?

Either can hold it, depending on who built it, who paid and what the contract says. Make sure both relationships are covered.

What about a mould built overseas?

Different laws apply. The same written points matter even more, along with export and shipping terms.

Why tag a mould if I own it?

Tags and photos make ownership visible to anyone at the plant, which matters if the moulder is sold or goes out of business.

Sources