Mike Beltzner here, Head of Product for Wattpad. We’ve got it on our list to revise our Terms of Service to make it both more protective of authorship rights as well as easier to read and understand. The seeming contradiction on our terms of service is due to the fact that they must be written to protect our authors as well as ourselves. Since we both require written permission to redistribute user submissions, but also codify that authors retain ownership of the material, what we’re saying is: “You can’t go reposting any user submissions except for the ones you own without our permission.”
I’d be happy to discuss further with you – just drop me a line at mike at wattpad dot com.
I am terribly impressed and I’m going to email Mike and let you know how it will turn out.