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What is "Spy Ware"?

Spyware is Internet jargon for Advertising Supported software (Adware). It is a way for shareware authors to make money from a product, other than by selling it to the users. There are several large media companies that offer them to place banner ads in their products in exchange for a portion of the revenue from banner sales. This way, you don't have to pay for the software and the developers are still getting paid. If you find the banners annoying, there is usually an option to remove them, by paying the regular licensing fee.

Why is it called "Spy ware" ?

While this may be a great concept, the downside is that the advertising companies also install additional tracking software on your system, which is continuously "calling home", using your Internet connection and reports statistical data to the "mothership". While according to the privacy policies of the companies, there will be no sensitive or identifying data collected from your system and you shall remain anonymous, it still remains the fact, that you have a "live" server sitting on your PC that is sending information about you and your surfing habits to a remote location.....