Here are the scary lines of the Terms:
You acknowledge and understand that Google and/or members of the Open Handset Alliance may independently develop applications that may be similar to or identical to your Entry in terms of theme, idea, function, or in other respects. You agree that you will not be entitled to any rights in, or compensation in connection with, any such similar or identical applications and/or ideas.
You acknowledge that no confidential, fiduciary, agency or other relationship or implied-in-fact contract now exists between you and Google and that no such relationship is established by your submission of an Entry to Google under these Terms
As between Google and the Participant, the Participant retains ownership of all intellectual and industrial property rights in and to the Entry that Participant had before submission, including the right to distribute the application commercially at any time. As a condition of entry, Participant grants Google a perpetual, irrevocable, worldwide, royalty-free, and non-exclusive license to use, reproduce, publicly perform, publicly display and create a derivative work from, any Entry that Participant submits to this Challenge solely for the purposes of allowing Google to test and evaluate the Entry for purposes of the Challenge and to advertise, display, demonstrate, or otherwise promote the Android platform.
My summary:You and Google will have the exact same rights to your idea. They can develop the idea and profit from it any way that they feel like. This entire contest, in my opinion, was done to get a bunch of people to submit their best creative ideas and allow Google to take them. I think that this is perfectly fine though because they are the ones developing Android and pushing support of Open Handsets. Google potentially has the right to be "bad people" (i am censoring myself), and just steal all the ideas and give nothing back to the community. I dont think they will do this. If they do, there will be hell to pay
