Quick Answer
A tooling ownership agreement establishes in writing that the moulds, dies, and fixtures you pay for are your property and can be moved to another factory. Without it, a factory can treat your tooling as its own and refuse to release it, locking you in. Specify ownership before paying for tooling.
What the Agreement Should Cover
- Clear statement that the buyer owns the tooling paid for
- The buyer's right to relocate tooling to another factory
- A tooling list with descriptions, photos, and identifiers
- Maintenance, storage, and end-of-life responsibilities
Settle tooling ownership before the first payment. Once a factory holds unmarked, undocumented tooling with no agreement, recovering it can be difficult and expensive.
Key Takeaways
- Tooling you pay for should be contractually yours.
- Secure the right to move tooling to another factory.
- Document tooling with a list, photos, and IDs.
- Agree ownership before paying.
Frequently Asked Questions
Who owns the tooling I pay for in China?
Only if your contract says so. Without a written tooling-ownership agreement, a factory may treat moulds and dies as its own and refuse to release them, even if you paid for them.
What is a tooling ownership agreement?
It is a written agreement establishing that the moulds, dies, and fixtures you paid for are your property, with the right to move them to another factory, supported by a documented tooling list.
Why does tooling ownership matter?
It prevents a factory from locking you in by holding your tooling hostage. With clear ownership, you can move production if quality or terms deteriorate.
When should I agree tooling ownership?
Before paying for tooling. Once a factory holds undocumented tooling with no agreement, recovering or moving it can be difficult and costly.
Can Plutonia secure tooling ownership for me?
Yes. Plutonia supports tooling-ownership arrangements, documents tooling, and structures relationships so the moulds you pay for remain yours. Submit your requirement to start.