The Die Is the Most Expensive Thing in the Project. Settle Who Owns It First.
Why the invoice is not enough
A customer who pays a tooling charge usually believes the tool is theirs, and a foundry that paid for the tool in its own capital budget usually believes the opposite. Both positions can be reasonable, and neither is documented by a tooling line item on a purchase order. The disagreement only surfaces when the relationship changes — a volume shortfall, a price dispute, or a move to a second source.
What matters in the agreement is not just the word "ownership" but the four rights attached to it: the right to take physical possession, the right to have the tool used by another party, the right to see maintenance records, and the right to a defined condition standard if the tool is transferred.
Terms worth writing down
State who holds title, and state what happens on tool retirement. Confirm the maintenance standard and who bears maintenance cost when a tool is running below the agreed volume. Agree a condition standard for transfer — typically the tool delivered in a condition capable of producing parts to the drawing, with a documented shot count — and agree who pays for refurbishment to reach it.
Also settle the practical access question in advance: what notice is required for a customer inspection visit, and whether the customer may witness the final production run on the tool before it is moved. These are cheap to agree at the start and expensive to negotiate during a transfer, which is exactly when the leverage has shifted.
FAQ
Who owns a die paid for by the customer?
Usually the customer, if the agreement says so explicitly. The tooling charge on a purchase order does not by itself establish title.
What rights should the agreement cover?
Possession, use by another party, access to maintenance records, and a defined condition standard on transfer.
What condition standard is normal on transfer?
The tool capable of producing parts to drawing with a documented shot count is the usual basis; agree who pays for refurbishment to reach it.
What about maintenance during the project?
State the maintenance standard and who bears the cost when running below agreed volume. Wear at low volume is often the disputed case.
All figures above refer to standard product data sheets; final confirmation is subject to written quotation.