Eric from Stone Temple Consulting has published a great interview with Adam Lasnik from Google discussing both paid links and duplicate content issues. Anytime Adam talks, I listen. He is honest and to the point unlike some from Google who prefer to say just enough to leave everyone wondering what is really going on.
Adam clears up much of the concern with the call for paid link reporting. As with any spam report, it’s not going to be used for direct action. Link reports are there to use as a benchmark when modifying the algorithm in an attempt to thwart similar spam actions.