Google, Microsoft and Yahoo! have all agreed on a new HTML tag called the canonical link that will help your search engine optimization efforts.
Search engines have a hard time differentiating between similar links to the same page. For example, http://www.bvsoftware.com and http://bvsoftware.com go to the same page but Google may index them as two separate pages. Also, UNIX is case sensitive to search engines may treat BVSoftware.com and bvSoftware.com as two separate locations too.
If the same page on your site is considered two separate pages in a search index your page rank may suffer. Let's say the 10 people link to www.bvsoftware.com and 10 people link to bvsoftware.com. That means that each page in the index has 10 inbound links instead of 20 inbound links. Your inbound links are cut in half.
Until now, the most common solution was a 301 redirect. This is a special HTTP response code that tells a web browser that a page has permanently moved from one location to another. We use a 301 redirect on bvsoftware.com to www.bvsoftware.com. This helps keep our page rank high but it can be time consuming and almost impossible to create 301 redirects for every variation on a url.
That's where the new Canonical Link tag comes into play. The tag allows page authors to tell search engines which URL is the preferred one for a given page.
<link rel="canonical" value="http://www.bvsoftware.com/" />
The tag goes in the HEAD section of your page. The tag is self closing so make sure you have a "/>" at the end.
A couple of notes:
1) This tag is a suggestion to search engines and is not guaranteed to be used. 301 redirects and good link strategy is still important
2) You can not use this tag to redirect between domains. We can't redirect Domain1.com to Domain2.com using this tag
3) You CAN suggest SSL urls as the preferred format. https://www.domain.com
4) Don't abuse the tag to redirect users to non-similar content. The search engines are smarter than that now.
5) Try and use absolute URLs instead of relative ones. Point directly to the final destination because a chain of canonical links may not be followed.
Other links about the tag:
http://blogs.msdn.com/.....aspx
http://ysearchblog.com/....
http://www.mattcutts.com/blog/canonical-link-tag/