Mak, they aren't losing all rights to the work! They are simply giving the company the right to use it as well. And they would only lose sole ownership of that work by choice. Their choice. If they want to keep total copyright over it, they can. And the release form can be modified to only be valid for a month if they so choose. Then, once a month has gone by, the company no longer has any right to use the information from the user.
You are trying to take things to extremes by saying they will lose ALL rights, for ALL time. Of course that isn't true. And sure, someone like you could take a screenshot of the info, but I'm sure the people who's own the information know this and wouldn't allow anything they wanted to keep private, or copyright later, to be owned by the company too.
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the (plain) and simple fact of the matter is the internet is not to be governed.
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I think you're misinterpreting the scenario. The company isn't trying to go behind the users back and steal their work and never give it back. I believe the company wants to post pictures of the employees on it's website, viewable only by other employees. They want to be trusted by their employees and make sure they won't be deceiving anyone.
They aren't trying to govern the internet at all, they are trying to use their users data, but with their permission.