I guess this competition is a combination of promoting the new Infinistitch products and a clever way to boost the number of designs for these products in the marketplace. Below are the general guidelines:

1. Create an American patriotism design in the spirit of July 4th on our Military Cap with InfiniStitch(tm) embroidery
2. Submit your Military Cap for this contest by tagging your image PDC2008
3. Submissions are accepted between June 13th and June 20th

Be sure to read the full rules though as conditions of eligibility apply. The competition is only open to legal residents of the 50 United States and the District of Columbia who are 18 years or older at time of entry. The prizes are as follows:

Grand Prize: One (1) $1000. American Express* Gift Card.
2nd Place: One (1) $100. CafePress Gift Certificate.
3rd Place: One (1) $75. CafePress Gift Certificate.

I assume that you will retain ownership of your design and will also benefit from any sales that you may make from them as well so even if you don’t win, you may win.