Do game companies actually infect your computer with spyware? If they do, is this practice ethical and is it legal?

I found it interesting to note that cnet.com's download page for Trickster Online marked it as "spyware free". According to the previous definitions of Spyware and the noted behavior of nProtect's GameGuard, this program qualifies as spyware and is not an optional component of the game's installation. If you do not run GameGuard, you cannot run Trickster Online. Browsing Ntreev's Terms of Service will tell you nothing of your "implied consent" to install GameGuard. The EULA that you accept when installing the game says nothing about installation of 3rd party programs. Sound familiar? Most virus/spyware programs don't tell you they're being installed.

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Link: Spyware, Rootkits, and Online Games