FUNK’D have posted in the Red Bubble forums (and I suspect a few others) about their label competition. Please consider absolutely all the entry conditions before entering a design contest like this.
From their website’s FAQ:
Do you offer a cash prize?
We do not offer a cash prize. The winner will have their design printed on a min. of 10,000 bottles (along with their myspace or website URL) that will be distributed throughout Australia or Internationally.
Will my entries be returned?
No. Each entry will become the sole property of FUNK’D™.
By participating in this competition, you hereby release all rights to the submitted art work final to FUNK’D™. You must be the legal copywrite owner of the said artwork (design entry). Every design entry submitted becomes the exclusive property of FUNK’D™. By submitting a design, the designer thereby grants FUNK’D™ perpetual license to use the design on its press releases, advertising, and any other way it sees fit worldwide to promote the FUNK’D™ or GO GET FUNK’D™ brand.
In conclusion: You will not get your original artwork back, nor do you retain copyright and there is no cash prize. Basically they’re inviting potentially thousands of artists and designers to submit potentially thousands of entries, and will not pay them for their time, expertise or work.
If you want to find out more about why this kind of competition is bad news for the design industry and the people who work in it, check out No!Spec.