Unless the fans are required to sign some kind of waiver when entering the contest, what is to prevent one of them from pursuing a copyright claim if Wisdom's subsequent books have any plot points that remotely relate to the fan ficcers' work? I don't want to detour authors and publishers from encouraging fan fiction but neither do I want such a fun publicity attempt to end badly either.
I saw this interesting promotion on Book Binge this morning. Linda Wisdom, author of 50 Ways to Hex Your Lover, and the October 1 release, Hex Appeal, and her publisher Sourcebooks, Inc. is offering a prize package for the best fan fiction entry surrounding Wisdom's books. You can go to Book Binge for the details of the contest. I am thrilled that there are authors that are embracing fan fiction but I worry about whether this is embracing it too closely.