Microsoft has just been granted a patent that discussed the relationship between paid and organic search listings. In it, Microsoft talks about filtering their search results so that if an advertiser both ranks well for a specific keyword and is running a paid ad for that keyword, the search results would filter out the organic listing so that only the paid ad would be displayed.
Keep in mind that just because Microsoft has filed a patent for this doesn’t mean they’ll actually put it into place in MSN searches.
Bill Slawski talks more about this at Search Engine Land and SEO By THe Sea.
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