Most buyers ask "who owns the mold?" only after T1 samples are approved, when switching factories has already become expensive. The better moment is before you send final CAD and before the purchase order.
Most buyers ask "who owns the mold?" only after T1 samples are approved, when switching factories has already become expensive. The better moment is before you send final CAD and before the purchase order.
Quick answer
The mold belongs to whoever your contract says owns it, and that usually follows who paid for it. HC-Mold offers three tooling models. In Model A you pay the full tooling (NRE) cost and own the mold. In Model B HC-Mold funds the tool and keeps ownership while you commit to an agreed cumulative purchase volume. In Model C you pay up front, the tooling cost is refunded from product payments once your cumulative deliveries reach the contracted quantity, and you own the mold throughout. Whichever model you choose, write it into the contract before the PO.
Key takeaways
- Settle ownership, transfer rights and end-of-life responsibility before file exchange and the PO, not after T1.
- Under Models A and C you own the physical mold. Under Model B HC-Mold owns it and you cannot move it.
- Your product design stays yours in every model. Under Model B, mold-making know-how (internal structure, runners, electrodes) stays with HC-Mold.
- An NDA protects information. It does not decide who owns the steel. You need both.
Why mold ownership deserves its own clause
A mold is usually the most expensive single asset in a molding project, and it sits in someone else's factory for years. Ownership decides four practical things: whether you can move production, who may authorize production runs, what happens when the tool wears out, and whether anyone else can ever use your design. As general guidance, paying for a tool does not create ownership by itself. The contract does.
The three tooling models at HC-Mold
| Model A: Buyer-funded | Model B: Factory-funded | Model C: Prepay, refund by volume | |
|---|---|---|---|
| Who pays tooling (NRE) | Buyer, in full | HC-Mold | Buyer, in full, up front |
| Who owns the physical mold | Buyer | HC-Mold | Buyer, always |
| Custody | HC-Mold keeps it for the buyer; used only for the buyer's orders | HC-Mold keeps and maintains it | Same as Model A |
| Moving it to another factory | Yes, with 30 days' written notice; buyer covers costs | No. Buyer has no right to remove it | Same as Model A |
| Refund of tooling cost | None | None | Refunded from product payments when cumulative deliveries reach the contracted quantity |
| Buyer's commitment | Pay NRE | Meet the agreed cumulative purchase volume | Pay NRE; reach the contracted quantity to earn the refund |
Amounts, quantity thresholds and schedules are set in the project contract.
Model A: you pay, you own
You pay the full tooling cost and own all of the physical mold. HC-Mold holds it as custodian and may use it only for your orders, never for a third party.
- Storage: 18 months of free storage. After that, storage fees apply at a rate set in the contract.
- Transfer: Give 30 days' written notice to have the mold moved to another factory. Disassembly, logistics, customs and insurance are at your cost. Aluminum extrusion dies are the exception: because of equipment compatibility, transfer is not guaranteed.
- End of life: The natural wear-out risk is yours. If a mold is damaged or lost because HC-Mold stored it improperly, HC-Mold compensates you.
- IP: Your product design and any derivative mold drawings belong to you.
Best for: projects where portability and design confidentiality matter most, or where annual volume is still uncertain. Watch for: the upfront cash requirement and the storage fee after 18 months.
Model B: HC-Mold funds the tool
HC-Mold bears the tooling cost and owns the physical mold. In return you commit to an agreed cumulative purchase volume.
- Your IP: Your product's appearance, function and design belong exclusively to you, and HC-Mold may not use your design for any third party.
- HC-Mold's IP: Mold-making technology such as internal structure, runners and electrodes belongs to HC-Mold.
- Maintenance and end of life: HC-Mold stores and maintains the tool. When it reaches the end of its life, HC-Mold bears the re-tooling cost as long as you keep meeting the purchase volume. If you do not, HC-Mold may scrap the tool, and you have no right to remove it.
Best for: buyers with confident, stable volume who want to conserve upfront cash. Watch for: you cannot move the tool, and volume commitments become part of your supply plan.
Model C: prepay now, get the tooling cost back through volume
You pay the full tooling cost up front. When your cumulative delivered quantity reaches the contracted number, HC-Mold refunds the tooling cost from product payments. If you do not reach it, you lose the refund but still own the mold.
Ownership never changes in Model C. Whether or not the refund is paid, the mold is yours, and transfer, storage, end of life and IP follow Model A.
Best for: buyers with a committed annual volume who want portability and a route to recover tooling cost. Watch for: the refund depends entirely on reaching the contracted quantity.
How to choose
- You want to be able to switch factories later: Model A or C.
- Your volume is uncertain: Model A, because it carries no purchase commitment.
- You have a steady, committed annual volume: Model C gives you the tool and a path to recover its cost.
- You want to minimize upfront spend and accept that the tool stays with the factory: Model B.
- Design confidentiality is critical: favor A or C, then combine with the NDA steps below.
The right choice depends on cash flow, volume and how much supply-chain flexibility you need. See how injection mold cost is built up before comparing quotes under different models.
Moving a mold to another factory (Models A and C)
- Notify in writing at least 30 days before you want the mold released.
- Agree the handover list: the mold, inserts and spare components, the derivative mold drawings that belong to you, and sample parts for reference.
- Plan export packing, customs and insurance. These are your costs.
- Budget for re-qualification. A tool in a new factory still needs trial runs and sample approval before production resumes.
Under Model B the tool stays at HC-Mold. If future flexibility matters to you, choose Model A or C at the start.
Who owns which IP
| Item | Models A and C | Model B |
|---|---|---|
| Product appearance, function and design | Buyer | Buyer exclusively; HC-Mold may not use it for third parties |
| Derivative mold drawings | Buyer | See contract |
| Mold internal structure, runners, electrodes and mold-making know-how | See contract | HC-Mold |
NDA: what to cover and when to sign
HC-Mold signs a confidentiality agreement before any file review, and drawings are access-controlled and not shared with third parties. When you draft or review an NDA with any supplier:
- Sign it before sending final CAD that includes product strategy or unreleased designs.
- Cover affiliates, finishing vendors and sample-logistics partners if they will see parts.
- Define the return or destruction of files at the end of the program.
- State a governing law and dispute venue acceptable to both sides.
Check who signs. An NDA with a trading company that never binds the mold workshop is paper comfort, not control. HC-Mold is a direct manufacturer, not a trading company. If you are comparing suppliers, see how to tell a factory from a trader and the factory audit checklist. More on HC-Mold's confidentiality practice is on the IP and NDA page.
Contract clauses to write down
- The tooling model (A, B or C) and who pays what, with payment milestones such as design approval, steel roughing complete, T1 shipment and final acceptance
- Definition of tool life and who bears wear-out
- Free storage period, fee after that, and where the mold is kept
- Transfer notice period, handover list and who pays for moving it
- Liability for damage or loss during custody
- IP split for product design, derivative drawings and mold-making know-how
- Purchase-volume or refund quantity, and how it is counted
- Ownership of spare cavities and inserts
- Engineering change (ECO) process
- Photo and publicity restrictions, and control of T1 samples and scrap
Red flags
- "The mold is yours" appears only in an email thread
- No terms for storage, transfer or damage
- The NDA is signed by an entity that does not run the mold workshop
- The supplier will not say where your tool is kept
- A volume commitment is discussed verbally but not written down
- The quote never states who owns the tool
What to send with a tooling RFQ
Send STEP/IGES and a PDF drawing with key dimensions, material and color, annual and total volume forecast, your preferred tooling model (or "undecided"), any requirement to move production later, and target delivery date. See the injection mold RFQ checklist for the full list. HC-Mold replies within 12 hours and quotes within 24 hours on a complete RFQ.
FAQ
Can I move my mold to another factory later?
Under Models A and C, yes, with 30 days' written notice and at your cost. Under Model B, no. Aluminum extrusion dies are not guaranteed to be transferable because of equipment compatibility.
Under Model C, does the refund transfer ownership to me?
No, because you own the mold from the start. If the contracted quantity is reached, the tooling cost is refunded from product payments. If it is not, you lose the refund but keep the mold.
What happens under Model B if my volume falls short?
HC-Mold may scrap the tool, and you have no right to remove it. If you keep meeting the purchase volume, HC-Mold bears the cost of re-tooling when the mold wears out.
Is an NDA enough to protect my IP?
No. An NDA covers information. Combine it with written tooling-ownership terms, limits on who sees your CAD, and a supplier that holds your files in-house.
Who owns my product design?
You do, under all three models. Under Model B, only HC-Mold's mold-making technology stays with HC-Mold.
This article is general information about HC-Mold's tooling models, not legal advice. Confirm all terms in your contract.
Ready to settle ownership before the PO?
Send your STEP/IGES file and tell us which tooling model you prefer. NDA is signed before file review, and we quote within 24 hours of a complete RFQ.
Written by HC-Mold Engineering Team · Reviewed by HC MOLD · Last updated: 2026-10-06
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