Just a couple of other things to add to the discussion...
Two Search Interviews
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Andy, yes: we can manually remove or otherwise penalize sites on incidents that we consider to be webspam.
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Official Google Webmaster Central Blog: An update on spam reporting
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So, the next time you can't help thinking that the ranking of a search result was not earned by virtue of its content and legitimate SEO, then it is the perfect moment for a spam report.
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A complete exclusion from Google´s SERPs is only one possible consequence of a spam report. Google might also choose to give a site a "yellow card" so that the site can not be found in the index for a short time. However, if a webmaster ignores this signal, then a "red card" with a longer-lasting effect might follow.
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Can a particular IBL pattern be considered "webspam"?
Can it be detected and penalized "automatically" as well as manually?
Dave