Venture Beat reports Google has won the patent for using location in an advertising system, or something called geo-targeting. Let me quote the article:

Greg Sterling asked, Has Google Just Patented Geo-Targeting? Seems like they have, on some level. Which is why the WebmasterWorld thread discussing this, seems to be somewhat cynical about patents in general.

Webwork said:

The patent litigation world is a business in itself, I agree, something needs to be done. Although, I am not sure exactly what.

Forum discussion at WebmasterWorld.