Your Guide to the Crowdsourced Workforce
readwriteweb.com
readwriteweb.com
It seems like a very grey area.
I'd also ask that because designs used my trademark or IP that if designers included a losing entry in their portfolio they should label it as "designed on spec" to avoid looking as if they had a working relationship with my company. If they wanted to sell the design as a pre-made logo, template, etc. I asked that they altered it slightly to make it more generic if it included my company name (i.e., from "Joe's Diner" to "Moe's Diner" or something).
Every contest site might have a different way of dealing with this sort of thing, though. I'd check their TOS.