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I know Google is giving a penalties for websites with duplicate content. What happens if I'm having an RSS feed with news articles and other sites publishes on their website my news? Isn't it duplicate content?

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there is no penalty for duplicate content, it's a myth and was officially debunked by Google. The only possible penalty is if you're using something like a 'keyword page builder' sort of thing, that creates the same page just changing a few words for different keywords – Rodolfo Apr 30 at 19:40
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It is duplicate content but they are the ones who will be hit with duplicate content penalties and issues as they are the ones republishing your work.

Google has recently made improvements to their algorithm to deal with this and ensure that the original publisher gets credit for the work but it still isn't perfect. However, you can help yo mitigate this by publish a hard link to the original article in your RSS feed so if someone is auto-publishing your articles from that feed that link will show that you are the original author.

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And what happens when someone copy-pastes my content into his website? How does Google check which website had published the content first? Does it look in the cached version? – Ervin Mar 2 '11 at 17:37
I'm sure it's a complicated system they use but I would suspect it includes seeing which publishes it first, which site has more duplicated content on it, etc. – John Conde♦ Mar 2 '11 at 17:51
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I think the duplicate content issue relates to content being taken from your site without permission. As you've given permission I don't think there should be any issues for either site as long as they are publishing a link back to your site. It's also best to just publish a teaser in the feed so they are only displaying a summary and people need to navigate back to your site for the rest. That should actually improve your ranking instead of the other way around.

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