They have multiple cities that they produce local online newspapers for.
They are using WordPress multi-site as a platform which allows them to post the articles in the core site, set the category, then use wp-multisite plugin to set which papers get that article.
Then each city paper (a separate multi-site) displays the content.
Some content is specific to one city, some is gets distributed to 3-4 cities, and some goes to the entire network (14 at present, soon to be 25).
This leaves us with multiple copies of articles out on the net - under the different city papers.
Will Google penalize for duplicate content on this type of site?