mademetop - 4:37 pm on Mar 16, 2011 (gmt 0)
Yes - could be scary stuff!
I've certainly never really looked at what a client was actually selling - though with a domain like that one maybe one would be ultra stupid not to realise that they were selling copies!
However, I always drew the line on promoting sites I personally felt were promoting something I disagreed with and/or knew were blatantly illegal. But that was just after having a cursory look at the business involved.
This ruling seems to indicate that you need to look in-depth at the products being offered - or, perhaps, at least have in your contract that the customer undertakes that no products or services infringe copyrights as some level of protection for the SEO.