The Vermont Statutes Online

Title 9: Commerce and Trade

Chapter 113: Commercial Molds, Dies, and Forms

• § 4151. Definitions

  As used in this chapter:

  (1) The term “customer” means any individual or entity who causes or caused a molder to fabricate, cast, or otherwise make a die, mold, or form or who causes or caused a molder to use a die, mold, or form to manufacture, assemble, or otherwise make a product or products.

  (2) The term “molder” means any individual or entity, including a tool or die maker who fabricates, casts, or otherwise makes a die, mold, or form or who uses a die, mold, or form to manufacture, assemble, or otherwise make a product or products.

  (3) The term “within three years following the last prior use” shall be construed to include any period following the last prior use of a die, mold, or form regardless of whether or not such period precedes April 14, 1981. (Added 1981, No. 16, eff. April 14, 1981.)

• § 4152. Exclusions

  This chapter shall not apply where a molder retains title to and possession of a die, mold, or form, and nothing in this chapter shall be construed to grant a customer any rights, title, or interest in such a die, mold, or form. (Added 1981, No. 16, eff. April 14, 1981.)

• § 4153. Ownership rights

  (a) Unless otherwise agreed in writing, if a customer does not take possession from a molder of a die, mold, or form situated in this State within three years following the last prior use thereof, all of the customer’s rights, title, and interest to such die, mold, or form may be transferred according to subsections (b) and (c) of this section to the molder solely for the purpose of destroying such die, mold, or form.

  (b) If a molder chooses to have all rights, title, and interest to any die, mold, or form transferred to the molder by operation of this subsection and subsection (c), the molder shall send written notice by registered mail, return receipt requested, to the customer holding the rights, title, and interest at the address, if any, indicated in the agreement pursuant to which the molder obtained possession of the die, mold, or form and to the customer’s last known address. The notice shall state that the molder intends to terminate all of the customer’s rights, title, and interest by having all such rights, title, and interest transferred to the molder for purposes of destroying the die, mold, or form.

  (c) If a customer does not take possession of the particular die, mold, or form within 180 days following the date the molder receives acknowledgment or nonacknowledgment of the return receipt of such notice, or does not make other contractual arrangements with the molder for taking possession or for the storage thereof, all rights, title, and interest of the customer shall transfer by law to the molder in order that the die, mold, or form be destroyed. Thereafter, the molder shall destroy the particular die, mold, or form as the molder’s own property without any risk of liability to the customer. (Added 1981, No. 16, eff. April 14, 1981.)

• § 4154. [Reserved for future use.]

• § 4155. Manufacturer’s mold lien

  (a) Molders shall have a lien, dependent on possession, on all dies, molds, forms, or patterns in their hands belonging to a customer, for the balance due them from such customer for any manufacturing, engineering, or fabrication work, and in the value of all material related to such work. The molder may retain possession of the die, mold, form, or pattern until the charges are paid.

  (b) A lien under subsection (a) of this section attaches and is perfected 30 days after any payment is due.

  (c) A molder may enforce the lien by sale as provided in sections 1952 and 1953 of this title, unless such sale would be in violation of any right of a customer under federal patent or copyright law. The owner of property subject to a molder’s lien who desires to question the reasonableness of such charges shall have the rights provided in section 1954 of this title.

  (d) The parties may alter the provisions of subsections (a), (b), and (c) of this section by contract.

  (e) A lien under this section does not take priority over an existing perfected security interest.

  (f) Nothing in this section is intended to alter any rights, obligations, excuses, or remedies under 9A V.S.A. Article 2.

  (g) A court may, on request of a customer, substitute a bond or other collateral in an amount satisfactory to the court, and order release of the lien. (Added 1997, No. 123 (Adj. Sess.), § 1.)