Seo by the Sea posted about a patent awarded to Google for exact match domain.
A Google patent, originally filed in 2003, and granted today (with Matt Cutts as one of the listed inventors) describes this problem in more detail and provides some ways that Google could potentially act to lessen the value of keywords included in domain names by recognizing when queries are commercial in nature and using a different ranking algorithm for those queries that might lessen the value of domains with keywords in them.
The patent is:
Systems and methods for detecting commercial queries
Invented by Amit Singhal, Matt Cutts, and Jun Wu
Assigned to Google
US Patent 8,046,350
Granted October 25, 2011
Filed: September 24, 2003
Read the whole article at Seo By The Sea