This is evil. They should rather tweak their algorithm instead of blacklisting phrases?
You may not like that it is against the law in many places but (1) legally aggressive companies don't like other companies suggesting their stuff gets pirated and google is a much juicier target than John Doe, (2) it would not help google if Jane Doe brought up google suggesting she download a torrent when she was doing a search to buy the album if Justin Bieber and pirated it instead.
This is just a sound business decision by google, not evil.