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Just as viruses were the hot topic of the late 90's, spyware has become the latest tech buzz the media.
The definition of spyware is very similar to that of a virus, but with two important exceptions: method of replication and monetary gain. The purpose of a virus is to infect and then replicate itself with no monetary gain. Spyware, on the other hand, does not attempt to replicate itself, but there is monetary gain involved. The distribution of spyware is done through preexisting means.
By definition spyware is definately bad news.
The good news is, it can be removed one way or another. Protection against this stuff is also available.
Companies such as Claria or Intermix Media are or were profiting from computers infected with their spyware software. There are many other companies but these two are the most widely known in the public eye.