Pearl Knowledge Sharing Center - Spyware

Legal issues related to spyware
Criminal law
Unauthorized access to a computer is illegal under computer crime laws, such as the U.S. Computer Fraud and Abuse Act, the U.K.'s Computer Misuse Act and similar laws in other countries. Since the owners of computers infected with spyware generally claim that they never authorized the installation, a prima facie reading would suggest that the promulgation of spyware would count as a criminal act. Law enforcement has often pursued the authors of other malware, particularly viruses. However, few spyware developers have been prosecuted, and many operate openly as strictly legitimate businesses, though some have faced lawsuits.
Spyware producers argue that, contrary to the users' claims, users do in fact give consent to installations. Spyware that comes bundled with shareware applications may be described in the legalese text of an end-user license agreement (EULA). Many users habitually ignore these purported contracts, but spyware companies such as Claria claim these demonstrate that users have consented.
Despite the ubiquity of EULAs and of "clickwrap" agreements, under which a single click can be taken as consent to the entire text, relatively little case law has resulted from their use. It has been established in most common law jurisdictions that a clickwrap agreement can be a binding contract in certain circumstances. This does not, however, mean that every such agreement is a contract or that every term in one is enforceable. Some jurisdictions, including the U.S. states of Iowa and Washington, have passed laws criminalizing some forms of spyware. Such laws make it illegal for anyone other than the owner or operator of a computer to install software that alters Web-browser settings, monitors keystrokes, or disables computer-security software. In the United States, lawmakers introduced a bill in 2005 entitled the Internet Spyware Prevention Act, which would imprison creators of spyware.

Civil law
           Former New York State Attorney General and now current Governor Eliot Spitzer has pursued spyware companies for fraudulent installation of software. In a suit brought in 2005 by Spitzer, the California firm Intermix Media, Inc. ended up settling by agreeing to pay US$7.5 million and to stop distributing spyware. The hijacking of Web advertisements has also led to litigation. In June 2002, a number of large Web publishers sued Claria for replacing advertisements, but settled out of court. Courts have not yet had to decide whether advertisers can be held liable for spyware which displays their ads. In many cases, the companies whose advertisements appear in spyware pop-ups do not directly do business with the spyware firm. Rather, they have contracted with an advertising agency, which in turn contracts with an online subcontractor who gets paid by the number of "impressions" or appearances of the advertisement. Some major firms such as Dell Computer and Mercedes-Benz have sacked advertising agencies which have run their ads in spyware.

Libel suits by spyware developers
           Litigation has gone both ways. Since "spyware" has become a common pejorative, some makers have filed libel and defamation actions when their products have been so described. In 2003, Gator (now known as Claria) filed suit against the website PC Pitstop for describing its program as "spyware". PC Pitstop settled, agreeing not to use the word "spyware", but continues to describe harm caused by the Gator/Claria software. As a result, other antispyware and antivirus companies have also used other terms such as "potentially unwanted programs" or greyware to denote these products.

Remedies and prevention
           As the spyware threat has worsened, a number of techniques have emerged to counteract it. These include programs designed to remove or to block spyware, as well as various user practices which reduce the chance of getting spyware on a system. Nonetheless, spyware remains a costly problem. When a large number of pieces of spyware have infected a Windows computer, the only remedy may involve backing up user data, and fully reinstalling the operating system.

Anti-spyware programs

Many programmers and some commercial firms have released products designed to remove or block spyware. Steve Gibson's OptOut, mentioned above, pioneered a growing category. Programs such as Lavasoft's Ad-Aware SE and Patrick Kolla's Spybot - Search & Destroy rapidly gained popularity as effective tools to remove, and in some cases intercept, spyware programs. More recently Microsoft acquired the GIANT AntiSpyware software, rebranding it as Windows AntiSpyware beta and releasing it as a free download for Windows XP and Windows 2003 users. In early spring, 2006, Microsoft renamed the beta software to Windows Defender, and it was released as a free download in October 2006. Microsoft currently ships the product for free with Windows Vista. Other well-known anti-spyware products include Webroot Spy Sweeper, Trend Micro's Anti-Spyware, PC Tools' Spyware Doctor, ParetoLogic's XoftSpySE, and Sunbelt's CounterSpy (which uses a forked codebase from the GIANT Anti-Spyware, now called Microsoft's Windows Defender). Blue Coat Systems released a gateway anti-spyware solution in 2004.
Major anti-virus firms such as Symantec, McAfee and Sophos have come later to the table, adding anti-spyware features to their existing anti-virus products. Early on, anti-virus firms expressed reluctance to add anti-spyware functions, citing lawsuits brought by spyware authors against the authors of web sites and programs which described their products as "spyware". However, recent versions of these major firms' home and business anti-virus products do include anti-spyware functions, albeit treated differently from viruses. Symantec Anti-Virus, for instance, categorizes spyware programs as "extended threats" and now offers real-time protection from them (as it does for viruses). Recently, the anti virus company Grisoft, who make the AVG anti-virus program, acquired anti-spyware firm Ewido Networks, re-labeling their Ewido anti-spyware program as AVG Anti-Spyware. This shows a trend by anti virus companies to launch a dedicated solution to spyware and malware. Zone Labs, who make the Zone Alarm firewall have also released an anti spyware program.