Hmm, no need to be all critical. It's a fun competition. Three scenarios can occur from this.
1) You win $200 and get exposure
2) you win and even if you get cheated out of your winnings (which I don't think will happen), you still get free exposure.
3) You lose and you still get exposure.
Either way, you win something (exposure, money, or both)
Honestly, if you think your music is "Professional" quality, than just submit it to professional studios to get signed and forgot this competition (if copyright issues of your tune is such a huge issue)...but right now i think everyone participating is in the learning stages of music and is content with giving free music out to gain exposure in return. We can't jump too fast in thinking we actually deserve money for our music. Build the exposure and the money will come down the road. Just be happy that this competitions is giving money away.
Bye for now