Yes there can be a penalty for duplicate website content, with search engines usually determining which content was the original. However, it does not mean that duplicate website content can’t be profitable. Many new syndicates have gone big by republishing stories.
Articles written by sites like Killerstartups get copied many times over. Do these articles get indexed? They sure do.
Copying content gets a bit tricky. If you do not permission, then you can run into copyright problems. But, if you write your own articles, you often can get them indexed twice by republishing them again.
Blog Syndication Services
Bloggers have had success using BustaBlog syndication getting their articles indexed twice.
A new service called shareapost (shareapost.com) lets users share their posts and enable anyone to republish them at their blog. The benefit for the writer? The articles contain links back to the author’s original post. You get content and they get links, it can be a win win situation.
Is there a Penalty for Duplicate Website Content? Yes there can be, but can it be profitable? Definately.