Peerguardian:
A bit of software which stands between your applications (eg torrent client, web browser) and the outside world. It uses a list of known evil IP addresses to prevent you unwittingly sharing files with the henchmen of the Motion Picture Ass. Of America and suchlike.
When you torrent, you can see the IP addresses of everyone you are sharing with, and they can see yours.
The enemy connects to torrents, notes the IP addresses of computers sharing the file, looks up the company which handles that connection and complains to them, the company then complains to you, the end user - in some US states the penalty is execution.
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