Kayhan Sepanta

In early 2005, Google implemented a new value, "nofollow", for the rel attribute of HTML link and anchor elements, so that website developers and bloggers can make links that Google will not consider for the purposes of PageRank—they are links that no longer constitute a "vote" in the PageRank system. The nofollow relationship was added in an attempt to help combat spamdexing.

Source: en.wikipedia.org

Since December 2007, when it started actively penalizing sites selling paid text links, Google has combatted link farms and other schemes designed to artificially inflate PageRank. How Google identifies link farms and other PageRank manipulation tools is among Google's trade secrets.

Source: en.wikipedia.org