We often receive emails from websites doing design contests or companies trying to produce a figure by soliciting for designs.  I had just thought this one sounded a little fishy.  And after David Horvath posted that they were using Bossy Bear without his permission, it made me even more skeptical.

You'll REALLY want to check out the Terms of Submission!

By submitting your design, you also agree that PatchTogether may use
your design for future advertising or promotion on and off the internet.

submission, you may not use, submit or sell the same Design or
derivatives of the Design in any forms for commercial use for a period
of ninety (90) days. If you intend to use it before ninety (90) days,
you have to notify PatchTogether for an early withdraw. Once the ninety
(90) days have passed, if your Design is not selected as a winner, you
are free to use the Design for any purpose. In order to do so, you have
to notify PatchTogether to remove the design for future competition

If your design wins the competition, you will
be notified by email. The reward will be stated on the relevant
competition section. Reward may vary in PatchTogether’s discretion.
Payment will be sent within ninety (90) days after PatchTogether
receives hi-resolution artwork suitable for manufacturing.

you design wins the competition, then you automatically assign
PatchTogether all exclusive rights to the design. You shall not sell or
use the design or the derivate of the design for any commerical purpose
without the expressed written consent of PatchTogether. You are also
acknowlege that you waive all "moral" rights that you may have in and
to your Design. PatchTogether might use or alter your design in any

Put all of the typos and grammatical errors aside (we all can make them, right?).  So...if you win, they own the design and can create toys, t-shirts, coasters, video games, etc. and you'll receive $500 plus "5% of the commissions made off of the sale of your toys".  And what does that mean?  I'm guessing a 5% commission...but if they are a middle-man and will be receiving 95% of the commissions while you get 5%, that would definitely change things.  Either way...always read the fine print!

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