I just can not comprehend that when you agree to give your music away in order to enter a competition, and sign a contract on it, how it can be illegal for the owner of that music to actually use it.
Isn't this basically what bands do when they sign a record contract? They sign a contract agreeing that the record company gets to own their music.
In the example of the logodesign contest, it would be pretty stupid to not let anyone win, and still use one of the contestant's logo. Then why make a contest out of it at all?
However, even if they do declare someone to be the winner, they can still use any of the other entries. They probably won't use the losing logo's as their own main one, but they can still use them.
Limp Bizkit was not looking for musical material in their contest though, if they were, the contest would have been formulated like this "If your song gets chosen, you win blahblah and blah...". Giving away the copyrights of music you play during your audition is just a side effect(so to speak) of entering the competition.
HOWEVER, if it is true what you're saying, then you have proved my point that Limp Bizkit probably didn't put the copyright thing in the contract in order to rip off music from their fans.
