We have a small business and have been building some products for a customer for 6 years . We have found ourselves unable to continue building the product and have offered to sell the customer the molds, which were given to my husband in lieu of payment by his ex boss before that business went into recievership in 1999. Our customer seems to think he owns the molds already but they were produced in 1994 by the original company and my husband helped to build them. He was of the understanding at the time that his company covered the cost of building the molds and that the other company would buy product from them. Can this company legally take the molds without proof of ownership?

Helo ryca:

No. They can't even take them WITH proof of ownership, unless you let them load them on a truck. And, from what you say, it doesn't look like they could win the molds in a lawsuit either.

However, in order to avoid litigation (and expensive attorney's), and to maintain business relationships, why not offer them a discount?

excon

No they can't take them, but they can tie you up in litigation. They would have to prove they paid for the molds originally and left them with the ex boss to produce the product. You are entitled to see their proof before going to court.