Do you know if your company has legal ownership of its injection molds?

Injection Molds – Ownership

This may never happen, but if it does, it could be a nightmare. What’s that? Proving that your company owns molds that are not in its possession.

Business environments change, natural disasters happen, and businesses close their doors. What do you do if your present plastic molder can no longer produce your parts? Simple, you go get your molds and place them with another molder. Maybe three days downtime, max. It will only be this simple if you plan ahead and have good documentation for your molds.
Here’s a checklist to use for establishing proof of ownership of all your molds. The goal is to keep your molds in production and out of courtrooms.
1. The injection molds purchase order should contain wording to the effect: “design, build, and test mold number XX to produce part YY as described on part print ZZ. All molds to remain the property of XYZ Co.
1. All designs, tools, jigs, fixtures, and assembly/production aids should be identified by mold number with words “Property of XYZ Co.” either by stamping it on the item in a visible area or with an identification tag.
2. Depreciate all molds as a capital expenditure rather than expense it as an engineering expense in your corporate financial statements.
3. Request a list of your tools from your molders on their letterhead. This list should include the following information:
o part names
o part numbers
o molder’s tool number
o molder’s tool location
o statement saying that the molds are the property of XYZ Co.
4. Your company should keep a similar list with the following additional information:
o Your company’s mold number, if assigned
o original purchase order number
o date the tool was completed
5. These lists should be audited annually. When you and the molder agree the new list is both complete and accurate, exchange letters confirming that the list is authentic and all molds listed are the property of your company.
6. If you receive mold design blueprints from the molder, make sure that your company’s name is listed in the title block as owner.
7. Be sure all outstanding invoices are paid before you ask to take possession of the mold. It is commonly understood that when outstanding invoices are paid, the owner is free to move a mold anywhere for any reason.

Injection Molds – Chain of Ownership

If your company works with its molders and follow the guidelines above, there’s a high probability that mold transfers can take place quickly. Keep in mind that possession of property is nine-tenths of the law. Without documentation between the molder and mold owner, it would be difficult to prove to a third party that anyone other than the person who currently possesses the mold is the legal owner.
Total Solution Plastic makes sure each mold we build has YOUR information on it. However, this may not be common practice within the mold building industry, so it wouldn’t hurt to request mold identification.