When you install the Google Custom Search Engine on your pages, on many browsers, you will notice that inside the search box is read in a light font, "Google Custom Search." Here is a screen shot of our implementation on this site.

A Google Groups thread asks how can you remove the default text from the search box.
To be clear, this is against the terms of service as mentioned by a Google Coop Engineer.
2.3 Attribution. The Search Box shall conspicuously display a graphic (available at http://www.google.com/coop/images/searchbox.gif ) that indicates that the Service is provided by Google. The graphic shall link to the Google site located at http://www.google.com or such other address as Google may designate from time to time during the Term.
But if you want to take a chance and remove the attribution then according to the Google Groups you can add the value=" ", so the code looks like:
<input name="q" type="text" size="40" value=" " />
There are mentions that the AJAX implementation by default does not show the "Google Custom Search" text. If that is the case, then go with that method and you won't be violating Google's terms of service.
Forum discussion at Google Groups.

Comments:
Michael Martinez
02/23/2007 08:43 pm
Why would anyone want to remove that text from the search box? It makes no sense. It's not like you can't tell from the results that they are being driven by Google.
Barry Schwartz
02/23/2007 08:49 pm
I assume they don't want "Google" on every single page of their site. They don't mind them on the search results but on every page there is a search box, they may feel is a bit too much. Either way - if you want to remove the text, you need to find a different provider. :)
David Eaves
02/24/2007 11:45 pm
I wanted to remove that bit of text from myne and then I found out it was agaiinst the trems of service, I haven't done much cosutomizing with myne yet: http://www.seoco.co.uk/search.html I think I am going to revamp it and turn it into an SEO Search Engine.
ogletree
02/26/2007 04:44 am
When I do a search on your site it makes the site bigger and ads horizontal a scroll bar.
Michael Martinez
02/26/2007 04:49 pm
Looks like everyone in the SEO community is now going to produce an SEO search engine with Google's CSE service. At least I was the first among many.... :)
nancy
05/21/2007 10:15 am
How I can remove stored search terms from ggogle search box.
sansuy
06/19/2009 04:45 am
How can i remove google custom search text from google custom search box
WESSEL
07/06/2009 06:56 am
When I go to Google ie. 'a' all items starting with 'a' appears but I would like to delete the ones not required to keep the list as short as poosible
No Name
11/13/2009 07:29 pm
i just placed the c-search in my blog-n yeah iread the tos of adsense n its clearly written we cannot delete the google attibutes
paual
01/24/2010 04:47 am
I got google custom search page and I don't want it!!!!! How do I get rid of it and just have the mozillafirefox start page
elzorroadrian
04/05/2011 08:15 pm
one thing is for them to let you know who they are when you get the results, another is for them to invade your private space with their capitalist shit logo...Anyway, that's my take on it...Cheers.
Ryann
11/06/2011 03:07 pm
any modification of the code aside from what was agreed upon, specially when your using the free service is against and a violation go the ToS.
pawan pandit
05/11/2012 12:28 pm
who can remove powered by google from custom search engine fore info visit at http://www.ifaaassociation.com
Aumkar
06/14/2012 04:08 am
See This Post I Know How To Remove This Logo And In This Post I explain It With Css. http://goo.gl/o99Rk
AwesomeGuy
07/14/2012 02:43 pm
I KNOW HOW TO REMOVE IT!!!!!!!!!! 1. Go to your Blogger dashboard2. Now Click On Template Tab.3. Now Click On Edit HTML Button.4. Find ]]>5. Paste Below Css Code Above It and save click on save template button.