It’s a question that surfaces at the worst possible moment, such as when a manufacturer relationship has broken down, and you need to move the tool.
The short answer is that if you paid for the mould tool, you should own it. But “should” and “do” aren’t the same thing, and the gap between the two is almost always down to what’s written, or not written, in the contract.
Read on to learn what mould tool ownership means in practice, what to look for in a tooling agreement, and how to protect yourself if you ever need to move production.
If You Paid for It, You Should Own It, Right?
There’s a reasonable expectation that if you’ve paid for a mould tool, it’s yours. Most customers assume that, and in a fair arrangement, it should be the case.
However, UK law doesn’t automatically guarantee it. Under the Sale of Goods Act 1979, ownership changes when the parties intend it to pass and that intention is determined by the contract, not by who paid the invoice.
That’s why a contract matters so much. Without a clear clause stating that ownership transfers to the customer on payment, the position can be ambiguous. We would have to admit that some manufacturers’ terms are written to keep it that way.
Three Common Ownership Arrangements
There are three common arrangements, and they don’t all leave you in the same position.
1. Customer-Funded, Manufacturer-Held
The most straightforward setup. You pay for the tool, you own it, the manufacturer stores it and runs production on your behalf. If the relationship ends, the tool is yours to collect.
2. Amortised Tooling
The tooling cost is spread into the unit price of each part over an agreed production volume.
This reduces the upfront cost, but mould tool ownership can be ambiguous. At what point does ownership transfer? After 10,000 parts? After the full volume is reached?
If the contract doesn’t state this clearly, you may find the manufacturer claims ownership until the amortisation is complete, even if you’ve paid well beyond the tool’s original cost in part pricing.
3. Manufacturer-Retained Ownership
Some manufacturers’ terms state that tooling remains their property regardless of who paid for it.
This is more common with overseas suppliers, but it happens in the UK too. If you haven’t read the T&Cs closely, you might not discover this until you try to move the tool.
Five Things Your Tooling Contract Should Cover
A clear agreement protects both sides. Whether you’re commissioning a new tool or reviewing an existing arrangement, check for:
- An explicit statement that ownership transfers to the customer on payment
- The right to remove or transfer the tool at any time, with reasonable notice
- Clarity on who is responsible for maintenance, storage and insurance
- A definition of what “the tool” includes
- What happens on termination of the manufacturing relationship, including, the manufacturer’s obligation to release the tool
Moving a Tool to a New Moulder
A mould tool transfer is a practical as well as a legal process. Even when ownership is clear, the tool needs to be prepared properly. The following should travel with it:
- The mould tool itself, including any inserts, slides and hot runner components
- Processing parameters
- Material specifications for the moulded part
- Maintenance history and any modification records
At BEC, we’ve handled tool transfers in both directions. We’ve taken delivery of tools from overseas manufacturers – inspected, repaired and modified them and put them straight into production.
BEC’s Position on Tooling Ownership
We believe tooling ownership should be clear from the start.
When you commission a mould tool through BEC, the ownership terms are set out in the agreement upfront. No ambiguity, no small print that works against you.
And if you ever need to move a tool, we’ll prepare it, package it and hand it over with full documentation.
Too many manufacturers make this harder than it needs to be, and it shouldn’t be. If you have questions about who owns your injection mould tool, or you need to move tooling to a new injection moulder, give us a call.
