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Chinese Factory Won't Return Your Molds? Tooling Ownership and How to Get It Back

You paid for the molds, but the factory has them and will not let them go. Who owns tooling under PRC law, when a factory may lawfully hold it, and the practical route to getting it out.

28 September 2026|About 7 minutes|By HAN FENG
An open injection mold on a workbench in front of an injection molding machine

Paying for a mold does not put you in control of it. Ownership depends on what your documents say, possession sits with the factory, and PRC law gives the factory a right to hold on to it in some situations. If your paperwork shows that you paid for the tooling and it belongs to you, you can demand its return. But if you owe the factory money, it may be entitled to keep the molds until you pay, sometimes even for debts from other orders. So the first question is not "who owns the molds?" but "do we owe this factory anything?"

This guide is for overseas brand owners and buyers who have paid for injection molds, dies, jigs or fixtures at a factory in mainland China and now want to move production, end the relationship, or simply get their tooling back.

Law as of 28 September 2026: PRC Civil Code (Arts. 235, 447–453 on return of property and liens; Arts. 783–784 on contracts for work); Supreme People's Court Interpretation on Security Interests under the Civil Code, effective 1 January 2021 (Art. 62).

Who owns the molds?

PRC law has no special rule for tooling. Ownership follows the agreement, and courts read the whole paper trail: quotations, proforma invoices, purchase orders, tooling invoices, payment records and emails. In our experience, disputes usually come from one of four arrangements.

Watch for the language trap. An English email saying "the molds are yours" does not help much if the Chinese proforma invoice you accepted says 模具归乙方 ("molds belong to Party B"). See our note on which version of a bilingual contract prevails.

When a factory may lawfully keep your molds

A creditor that lawfully possesses a debtor's movable property may retain it if the debt is unpaid (Civil Code Art. 447). For a contract for work, the Civil Code specifically allows the factory to retain the work product if the customer does not pay (Art. 783). Between two companies, the lien need not even arise from the same transaction (Art. 448), but the Supreme People's Court has narrowed this: where the debt and the retained property are not part of the same legal relationship, the debt must arise from the companies' continuing business dealings (Security Interpretation, Art. 62).

The limits matter as much as the right:

When the factory is simply holding you hostage

Sometimes there is no genuine debt. The factory is losing your business and uses the molds as leverage, or, worse, keeps running your tooling to sell your product to others. The first is a breach of contract and an unlawful retention of your property; you can demand return of the molds (Art. 235) and damages. The second may also infringe your intellectual property or amount to unfair competition, and it changes the tone of the negotiation considerably. Evidence of the factory's sales, such as test purchases, online listings or customs data, is worth collecting early.

How to get the molds back

STEP 1

Resolve the money question

If you genuinely owe the factory money, paying it, if necessary into escrow or under a written reservation of rights, is usually faster and cheaper than any legal route. If the claimed debt is disputed or relates to another entity, say so in writing and explain why no lien applies.

STEP 2

Serve a precise written demand

List every mold by number, cavity count and photograph, state the legal basis of ownership, set a pickup date and name the logistics company. Send a Chinese version to the registered address. Vague demands for "our tooling" invite vague answers.

STEP 3

Freeze, then sue if needed

Where there is a risk that molds will be moved, used or damaged, a Chinese court can order preservation before or during proceedings, usually against security. A claim for return of property and damages then follows in the forum set by your contract.

When the molds are released, inspect them with a written handover record noting their condition, and plan the next step before you collect: transfer to a new factory in China, or export. Molds shipped abroad still go through export declaration, so involve your freight forwarder early.

Prevention: the tooling agreement

Most of these disputes are avoidable with a short, separate tooling agreement signed in both languages. At a minimum it should state that the buyer owns the molds from payment of the mold fee; list each mold with its number and photographs; require an ownership nameplate on each mold; limit use to the buyer's orders; set custody, maintenance and insurance duties; require return within a fixed number of days on request; and, most importantly, provide that the molds may not be retained for any debt (Art. 449). An annual photo audit of the tooling costs very little and makes any later dispute far easier to prove.

Frequently asked questions

Related service: Mold & Design Ownership ↗

Tooling disputes turn on documents and leverage.

We can review your mold payments and supplier documents, assess any lien the factory may claim, and handle demand letters, preservation applications and recovery, or draft a tooling agreement before the next project starts.

Related Reading

This article is general information about PRC law as of 28 September 2026 and does not constitute legal advice. Tooling ownership and lien rights depend on the specific documents, payments, parties and dealings involved.

Han Feng

PRC Lawyer | Tiantai Law Firm Shanghai Office | Licence No. 13101201310936574

Last updated: 28 September 2026 · About Han Feng · LinkedIn ↗