If you are starting an OEM (Original Equipment Manufacturing) project for outdoor furniture, a critical question arises: Do you own the design and the molds? The direct answer is: it depends entirely on the specific terms of your contract with the manufacturer.
In a typical OEM arrangement, you, as the client, provide the complete product design, specifications, and technical drawings. The manufacturer's role is to produce the furniture exactly to your provided blueprint. In this scenario, you inherently own the original design. However, the ownership of the physical molds used to create your furniture parts is a separate and negotiable matter. Often, you pay for the mold development and production costs. It is crucial to explicitly state in the contract that upon full payment, the molds are your property and must be stored securely by the manufacturer for your exclusive use.
The situation is different if the project leans towards ODM (Original Design Manufacturing). Here, the manufacturer may offer you their existing designs or modify them for you. If you use a manufacturer's pre-existing design, they typically retain the design intellectual property. The molds for such designs are almost always owned by the factory.
Therefore, clarity in your agreement is paramount. A well-drafted contract should specify: 1) Ownership of the product design and intellectual property, 2) Ownership, payment terms, and storage responsibility for the molds, and 3) Restrictions on the manufacturer's ability to use your design or molds for other clients. Without a written contract asserting your ownership, the manufacturer may legally retain the molds and could potentially use your design for others.
To secure your assets, always insist on a detailed contract that transfers mold ownership to you upon payment. Conduct regular factory audits, and consider using third-party inspection services. Ultimately, in OEM, you can own both the design and the molds, but this ownership is not automatic—it is secured through vigilant negotiation and precise legal documentation.
