How does he get to use those logos before he paid for them? Sounds like multiple copyright violations per contest to me. I understanding that the artist may not be in a position to legally contest anything, but it's clearly unethical.
This is what's in 99Designs faq:
"On 99designs, designers agree to upload only original artwork, so each designer owns the rights to their design submissions.
This is true until the contest holder chooses one of the designs as the contest’s winner. Then, and only then, can the designer agree to transfer his or her rights to that particular design to the contest holder."
