AN ACT Relating to
rights to dies, molds, forms, and patterns; adding a new chapter to Title 63
RCW; and adding a new chapter to Title 60 RCW.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec.
1. Unless the context
clearly requires otherwise, the definitions in this section apply throughout
this chapter.
(1)
"Customer" means an individual or entity that causes or did cause a
molder to fabricate, cast, or otherwise make a die, mold, or form.
(2) "Molder"
means an individual or entity, including but not limited to a tool or die
maker, that fabricates, casts, or otherwise makes a die, mold, or form.
(3) "Within three
years after the last use" means the three-year period after the last use
of a die, mold, or form, regardless of whether or not any portion of that
period predates the effective date of this act.
NEW SECTION. Sec.
2. (1) In the absence of a
written agreement otherwise, the customer has title and all rights to a die,
mold, or form in the molder's possession.
(2) If a customer does
not claim possession from a molder of a die, mold, or form within three years
after the last use of the die, mold, or form, title and all rights to the die,
mold, or form may be transferred to the molder for the purpose of destroying or
otherwise disposing of the die, mold, or form.
(3) At least one
hundred twenty days before seeking title and rights to a die, mold, or form in
its possession, a molder shall send notice, via registered or certified mail,
to the chief executive officer of the customer or, if the customer is not a
business entity, to the customer's last known address. The notice must state
that the molder intends to seek title and rights to the die, mold, or form.
The notice must also include the name, address, and phone number of the molder.
(4) If a customer does
not respond in person or by mail within one hundred twenty days after the date
the notice was sent, or does not make other contractual arrangements with the
molder for storage of the die, mold, or form, title and all rights of the
customer transfer by operation of law to the molder. Thereafter, the molder
may destroy or otherwise dispose of the die, mold, or form without any risk of
liability to the customer.
NEW SECTION. Sec.
3. Unless the context
clearly requires otherwise, the definitions in this section apply throughout
this chapter.
(1)
"Customer" means an individual or entity that contracts with, causes,
or caused a plastic fabricator to use a die, mold, form, or pattern to
manufacture, assemble, or otherwise make a plastic product.
(2) "Plastic
fabricator," "fabricator," or "molder" means an
individual or entity, including but not limited to a tool or die maker, that
contracts to or uses a die mold, form, or pattern to manufacture, assemble, or
otherwise make a plastic product for a customer.
NEW SECTION. Sec.
4. (1) A plastic fabricator,
molder, and person conducting a plastic fabricating business has a lien,
dependent on possession, on a die, mold, form, or pattern belonging to the
customer for the amount owing from the customer for plastic fabrication work
and for the value of materials used in the work. The fabricator may retain
possession of the die, mold, form, or pattern until the charges are paid. This
lien does not have priority over any security interest in the die, mold, form,
or pattern that is perfected at the time the fabricator acquires the lien.
(2) Before a lien is
enforced, the fabricator must cause written notice to be delivered personally
or by registered or certified mail to the last known address of the customer.
The notice must state that the fabricator will exercise its lien right because
of nonpayment. The notice must also state the amount of money owed and demand
payment. The fabricator's name, address, and phone number must be included in
the notice.
(3) If the fabricator
is not paid the total due within sixty days after the notice has been received
by the customer, the fabricator may foreclose the lien by notice and sale as
provided in this section, if the die, mold, form, or pattern is in the
fabricator's possession. The fabricator must send notice of intended sale, by
registered or certified mail with return receipt requested, to the last known
address of the customer. The notice must include: A description of the die,
mold, form, or pattern to be sold; a statement of intent to sell the die, mold,
form, or pattern at public sale; the date, time, and place of the sale; and an
itemized statement of moneys owing.
If there is no return
receipt or if the postal service returns the notice as undeliverable, the
fabricator shall publish notice of intention to sell the die, mold, form, or
pattern at public sale in a newspaper of general circulation in the county
where the die, mold, form, or pattern is physically located. The publication
must include: A description of the die, mold, form, or pattern; the name,
address, and phone number of the customer; the name, address, and phone number
of the fabricator; and the date, time, and place of the sale.
The fabricator is
entitled to the amount owing plus the costs of holding, preparing for sale, and
selling the die, mold, form, or pattern. The fabricator is also entitled to
reasonable attorneys' fees incurred.
(4) If the sale
proceeds exceed the amount owing, the excess must be paid to subsequent lien
holders. Any remainder must be remitted to the customer.
(5) A public sale may
not be held under this section if it is in violation of a right of a customer
under federal patent or copyright law.
NEW SECTION. Sec.
5. (1) Sections 1 and 2 of
this act shall constitute a new chapter in Title 63 RCW.
(2) Sections 3 and 4 of
this act shall constitute a new chapter in Title 60 RCW.
