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NDA & Mold Ownership

STANDARD

Also: non-disclosure agreement, tooling ownership

An NDA protects your designs, while a mold ownership clause states who legally owns tooling you paid for.

An NDA (non-disclosure agreement) protects the drawings, specifications, and commercial correspondence you share with a factory. It is a standard request, and any serious supplier will sign one before you release proprietary design work.

Mold ownership is a separate and equally important question. When you pay for custom tooling, you should own it — which means the factory cannot reuse your mold to make your product for a competitor. This is what actually protects your investment.

Ownership is only as strong as the written clause. A verbal promise that the mold is yours is not enforceable, so the ownership term belongs in the contract alongside the tooling fee.

Also agree on the practical details: where the mold is stored, who maintains it, and what happens to it if either party ends the relationship — whether it ships to you or is scrapped.

Practical takeaway: Sign an NDA before sharing designs and get the mold ownership clause in writing before paying the tooling fee.

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