Well I think that the standart way to protect themselves was to put a disclaimer that the band has nothing to do with eventual plagarism and that the person who plays copyrighted material will be responsible for his actions. They have recorded the audition and if anybody tries to play something plagarised Bizkit will have their hands clean cause they have evidence.
That's how I see it. This contract does not leave you any chance to claim the copyrights of your work and this makes me think that the purpose of this tour id other than finding a guitar player.

Anyway, this as I see is an old story and probably till now fred durst has recorded the new Limp Bizkit hit with the riff of, let's say, your neighbour.