So is that to say, this agreement allows Bethesda to break copywrite on our intelectual property?
Depends how good your lawyer is.
The Steam TOS is abit worse. The no make money thing is pretty standerd for all fan-base stuff. General rule (itlest in USA)
If your not making money off it, using it to become famous, sell your buiness/products. It falls in Fan-Made Catagory of safe stuff.
There are alot of if's and but's.
If you create clothes designs, and use them in real life, then put them in game (which you already own legal rights to) I'm sure there are some legal issues on its own. (which put you at fault)
But stuff like that. (I Mod over at Capcom) So issue has come up before.
Often content is checked, so if say Beth wants to use your mod or release it as pay DLC, or reward you. They will check and ask for legal rights before hand. They be walking into Trap if they just out right claim rights to it.
If Legal Issue is in Question, the "work" will often not get used.
Same goes for Steam agreement, Techinally Beth has 1st legal rights.
Just need ask yourself.. you willing to give something of yours for free. Or save it for the day you make your own video game?