"While duplicate content as an SEO problem has been around for years, the way Google handles it has evolved dramatically and seems to only get more complicated with every update. Panda has upped the ante even more.
So, I thought it was a good time to cover the topic of duplicate content, as it stands in 2011, in depth. This is designed to be a comprehensive resource – a complete discussion of what duplicate content is, how it happens, how to diagnose it, and how to fix it. Maybe we’ll even round up a few rogue pandas along the way."
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THE reference article on duplicate content, a must read.