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Do dofollow backlinks from duplicate articles across different sites improve site rankings?

I guess Google etc may like to discount completely the duplicate articles and backlinks in it.

Shouldn't this non-sense duplication of content be penalized?

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The duplication of content is what Google's "Panda Algorithm" is all about reducing and eliminating, at least in its search results. So as far for SEO it's value is greatly reducung and diminishing more each day.

As far as links in that content, they're probably equally devalued as well. So links placed in articles and then distributed in article farms that used to be popular not too long ago aren't going to be worth anything anymore (as they shouldn't).

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+1 ... and this may be a good opportunity to note that the way in which the value of links is dampened as a result of "Panda" is not a penalty in the sense that individual pages' rankings are not being decremented, rather, the system by which pages are ranked is changing. Misapplication of the term "penalty" often confuses the issue of whether black hat and gray hat practices are desirable; they aren't helpful to users, so you can expect Google to optimize its algorithms to ignore the practices (whereas a penalty would involve ignoring the sites which employ the practices). – danlefree♦ Jan 22 at 10:46
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