We are not attorneys and you should seek legal council.
But our interpretation of # 6 of the Release Form: Neither InkTip.com nor a rep or producer who uses our site wants to get sued if a work similar to the writers gets produced. The idea being, producers often look for a particular type of script. In many cases there are hundreds of similar types of scripts that they have read. In essence they don't want to get sued for choosing one script over another writer's.
Here's one example: we once had two scripts on our website by different writers that were so similar that either synopsis would have matched either script. The stories were extremely alike, but the writers had never met each other.