§ 66-67.3. Disposal of dies, molds, forms, and patterns. - North Carolina Statutes

§66‑67.3.  Disposal of dies, molds, forms, and patterns.

(a)        Definitions. – Thefollowing definitions apply in this section:

(1)        Customer. – Eitherof the following:

a.         A person who causesor caused a molder to fabricate, cast, or otherwise make a die, mold, form, orpattern.

b.         A person who causesor caused a molder to use a die, mold, form, or pattern to manufacture,assemble, or otherwise make a product.

(2)        Molder. – A tool ordie maker or any other person who does either of the following:

a.         Fabricates, casts,or otherwise makes a die, mold, form, or pattern.

b.         Uses a die, mold,form, or pattern to manufacture, assemble, or otherwise make a product.

(b)        Ownership andTransfer. – A customer has all rights, title, and interest to a die, mold,form, or pattern made or used by a molder on behalf of the customer unless anagreement provides otherwise.  If the customer does not claim possession of thedie, mold, form, or pattern from the molder within three years after the lasttime it is used, the molder may choose to obtain all rights, title, andinterest to the die, mold, form, or pattern by operation of law unless awritten agreement provides otherwise.

(c)        Procedure. – If amolder chooses to have all rights, title, and interest to a die, mold, form, orpattern transferred to the molder by operation of law, the molder must send awritten notice, by registered mail, return receipt requested, to the customerand to any known secured creditor.  The notice must state that the molderintends to terminate the customer's rights, title, and interest in a mold, die,form, or pattern by having those rights, title, and interest transferred to themolder by operation of law pursuant to this section.  The notice to thecustomer must be sent to the customer's last known address or, if the customerhas designated in writing a different address for receipt of the notice, to thedesignated address.  If a return receipt cannot be obtained for a notice thatis mailed, the molder may give notice by publication in accordance with G.S. 1A‑1,Rule 4(j1).  The rights, title, and interest in a die, mold, form, or patternare transferred by operation of law to a molder who gives notice as required bythis section unless, within 30 days after the date the molder receivesacknowledgement of the return receipt of a notice that is mailed or 45 daysafter the date of first publication of a notice made by publication, thecustomer takes possession of the die, mold, form, or pattern, or makes othercontractual arrangements with the molder for taking possession of or forstoring the die, mold, form, or pattern.

(d)        Use Upon Transfer.– A molder to whom the rights, title, and interest in a die, mold, form, orpattern is transferred by operation of law under this section may destroy orotherwise dispose of the die, mold, form, or pattern as the molder's ownproperty without any risk of liability to the customer.  The molder may not usethe die, mold, form, or pattern for any other purpose.

(e)        Scope. – Thissection does not affect a right of a customer under federal patent or copyrightlaw or any state or federal law pertaining to unfair competition. (1993,c. 541, s. 9.)