yes google does have rules against sites that offer copyrighted content on the site adsense is on.
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www.google.com/adsense/s ··· ium=linkSite Content
While Google offers broad access to a variety of content in the search index, publishers in the AdSense program may only place Google ads on sites that adhere to our content guidelines, and ads must not be displayed on any page with content primarily in an unsupported language. View a list of supported languages.
Sites displaying Google ads may not include:
* Violent content, racial intolerance, or advocacy against any individual, group, or organization
* Pornography, adult, or mature content
* Hacking/cracking content
* Illicit drugs and drug paraphernalia
* Excessive profanity
* Gambling or casino-related content
* Content regarding programs which compensate users for clicking on ads or offers, performing searches, surfing websites, or reading emails
* Excessive, repetitive, or irrelevant keywords in the content or code of web pages
* Deceptive or manipulative content or construction to improve your site's search engine ranking, e.g., your site's PageRank
* Sales or promotion of weapons or ammunition (e.g., firearms, fighting knives, stun guns)
* Sales or promotion of beer or hard alcohol
* Sales or promotion of tobacco or tobacco-related products
* Sales or promotion of prescription drugs
* Sales or promotion of products that are replicas or imitations of designer goods
* Sales or distribution of term papers or student essays
* Any other content that is illegal, promotes illegal activity, or infringes on the legal rights of others
Copyrighted Material
Website publishers may not display Google ads on web pages with content protected by copyright law unless they have the necessary legal rights to display that content. Please see our DMCA policy for more information.
google does check because they turned down one of my websites before for adsense not for illegal content but i hadnt finished the site yet and had a bunch of dead links so they denied it