Imagine linking to a company's website when referencing them in an article and having that company demand you remove the link because of copyright concerns. Or worse, the company threatens to sue you because they say the link from your website resulted in "material financial loses [sic] to the company."
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Although, the pretense for the threat was a copyright claim, the company explained that the outgoing link from the blog hurt the company "due to search engine penalties resulting from the links originating under your control."
Google's most recent Panda update is said to punish "over-SEO'd" websites. In other words, websites with too many links originating from weak or spammy websites will be penalized by Google.
However, BigPinkCookie is the furthest thing from a spammy website. It's a personal blog with an impressive Google PageRank 5, which means Google has deemed its content quite valuable, and links from that type of blog are typically very desirable for search engine optimization purposes.
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This case displays the insane level that some companies will go to in claiming that unwanted links to their website represents intellectual property "problems". But, disturbingly, some authorities agree with this concept. Last year the Department of Homeland Security preemptively seized websites merely for linking to copyrighted material.
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