Worries about FlashLite contest rules

I just saw that the FlashLite contest that Macromedia is holding has what appears to be very restrictive terms and conditions attached.

I quote the relevant area, under point 8 (Assignment of Rights), below:

"Entrants retain any and all rights of ownership, intellectual property rights and all other rights entrant may have in and to the entry. Notwithstanding such ownership rights, by entering, entrants personally and on behalf of their company grant and assign to Macromedia, its successors and assigns and those acting under its direction, a perpetual, non-exclusive worldwide right and license, but not an obligation, free of any charge or compensation, to use entries, and all rights subsidiary to and derivative from the entries, for the development and incorporation in, Macromedia products or services, in any medium now known or invented in the future."

've emphasized the most important parts.

From what I understand of this, you will be allowing Macromedia (or even those acting under its direction -- which could mean anyone) to incorporate or modify your application and sell it as part of a Macromedia product or as a Macromedia product or service.

Personally, I find this to be a deal-breaker. I do't know of anyone with a good application that would enter the contest knowing that they would be practically giving away their baby to Macromedia to use/modify/sell as it likes. I understand the clauses about allowing rights for use in marketing, etc., but not for "development and incorporation in Macromedia products or services." Tha's just unacceptable.

Sounds like some of the overly-zealous lawyers at MM got free reign again like they did with the Flash components EULA a little while back. Is it perhaps time to rein them in again?

I would love to hear what someone from MM has to say about this.

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