I really like what you are trying to do here but having read your rules I don't see how anyone can enter.
Agreeing to the terms forfeits all of the creator's right/uses and gives you complete control over all and or any entry's marketing, royalties, use, etc.
From your site:
"Entrant Representations and Warranties: By submitting any Design, you represent and warrant that: (i) you are the sole owner of all rights to the Design, which was created without any suggestion or request from any third party, and any development, use, production, distribution or other exploitation thereof will not infringe, misappropriate or violate any intellectual property or other right of any person or entity; (ii) you are not, and will not be, violating your obligations or any rights of any third party by providing the Design or complying with your obligations hereunder; (iii) you have not previously licensed, sold, commercialized, transferred or assigned the Design to another person or entity; and (iv) you have the full right to provide Local Motors with the assignments and rights provided for herein.
Design License Grants: You hereby do and shall grant Local Motors a worldwide, nonexclusive, royalty-free, fully paid, sublicensable and transferable license to use, modify, reproduce, distribute, prepare derivative works of, display, perform, and otherwise fully exploit the Design in connection with the Local Motors website(s), public viewing and voting for this design contest, and/or otherwise in connection with Local Motors' (and its successors and assigns) marketing activities, in any media formats and through any media channels (including, without limitation, third party websites). In addition, you hereby do and shall grant each user of the Local Motors website(s) the rights you grant in the Terms of Use therein, including, without limitation, a license to access and vote on your Design through such website(s). For clarity, Local Motors shall not use your Design to build a vehicle or otherwise assert any ownership rights over your Design, including describing your Design as a Local Motors branded vehicle (beyond any Local Motors branding you have incorporated in your Design), unless or until Local Motors has paid you for the right to build a vehicle based on your Design or you have assigned your rights in the Design to Local Motors, respectively, in accordance with the Section below entitled "Selected Design."
Restrictions on Use of Submitted Designs: In submitting your Design, you agree not to reproduce, adapt, display, or distribute, sell, or submit to others the Design for any commercial purpose, or enter the Design in another competition or contest for ninety (90) days after the end of the designated submission period (i.e., while the Design is being evaluated by Local Motors). Notwithstanding the foregoing and for the avoidance of doubt, especially if you are a student but also for any other designer, you always retain the right (including during such ninety (90) day period) to include the Design in your personal portfolio for purposes of securing employment. Once the ninety (90) days have passed, even if your Design has not been selected as the winner by Local Motors, Local Motors may still choose to continue to use your Design for marketing purposes (e.g., on its website or on television, or in email or printed media) pursuant to the license granted above; however, you are free to use the Design for any commercial or non-commercial purpose and to request that Local Motors stop using the Design by notifying Local Motors by email at design@local-motors.com. Following receipt of your notice, Local Motors will remove your Design from its website and all of its marketing materials in as timely a manner as possible; however, you acknowledge and agree that Local Motors is not obligated to remove Designs from, and retains a limited right to use the Designs in, its existing marketing materials, including without limitation where such removal would be impractical (such as in printed media that has already been distributed). In addition, if your Design is to be used elsewhere, you cannot use the Local Motors web community (created through, for example, Car Chat and blogs) (the "Community") to promote the Design or the person or entity using the Design. You further agree not to use the Community to promote the products and/or services of any person or entity that operates in competition, directly or indirectly, with Local Motors. Local Motors reserves the right to choose your Design as the winner even after the ninety (90) day evaluation period has passed, on the condition that the Design has not yet been used for commercial purposes."
I am glad to know you are investigating the site and the terms.
This is the particular part to pay attention to:
"For clarity, Local Motors shall not use your Design to build a vehicle or otherwise assert any ownership rights over your Design, including describing your Design as a Local Motors branded vehicle (beyond any Local Motors branding you have incorporated in your Design), unless or until Local Motors has paid you for the right to build a vehicle based on your Design or you have assigned your rights in the Design to Local Motors, respectively, in accordance with the Section below entitled "Selected Design."
The first paragraph basically says you have to own your design to submit it in the competition.
The second paragraph says we can use your designs for promotional purposes, but we can not build a car from it. You are right that we are asking you to give us permission to market your designs; LM Designers have been featured in magazines and websites, so this consent is necessary. The rightful designers' names have always appeared next to their respective designs and so far the publicity has been much appreciated by the community. By participating, posting, and uploading to Local Motors you are allowing Local Motors to promote your designs as well as the LM Brand represented by your designs.
These are our intentions. If we do not respect our community and the designs, we will cease to exist. You can bet we will be around for a long time!
There are no royalties associated with Local Motors. We are building limited production vehicles; we anticipate 2,000 of a single design. This is one of the main differences between Local Motors and a large manufacturer who might produce 100,000 of the same vehicle. If you were working with a large company you would be expected to put in hundreds of hours of work. Local Motors requires much less effort.
This is a chance for you to increase your personal notoriety, prove your design skill, and see your car on the road. If you have already done these three things, you may not be interested in Local Motors. If you decide you no longer want to participate, you can request for your designs to be taken down and no longer used by Local Motors:
"...however, you are free to use the Design for any commercial or non-commercial purpose and to request that Local Motors stop using the Design by notifying Local Motors by email at design@local-motors.com. Following receipt of your notice, Local Motors will remove your Design from its website and all of its marketing materials in as timely a manner as possible; however, you acknowledge and agree that Local Motors is not obligated to remove Designs from, and retains a limited right to use the Designs in, its existing marketing materials, including without limitation where such removal would be impractical (such as in printed media that has already been distributed)."
Is there a specific part of the terms you need clarification on? I am happy to talk about this further.
I checked out your website! I really enjoyed your sketches, you have excellent style.
This message has been edited. Last edited by: AriFerrari,