The popular Kazaa (peer-to-peer) file-trading software and a supposed spyware-blocking application are among the first four programs identified as "badware" by the fledgling group., in its first report since forming in January, identified SpyAxe, a program advertised as a spyware blocker, as badware, the group's term for spyware, viruses, deceptive adware and other nefarious software. Besides Kazaa and SpyAxe, named MediaPipe, a download manager produced by UK firm Net Publican, and screeensaver Waterfalls 3, as badware.

The four applications "clearly violated" guidelines from, said John Palfrey, co-director of and executive director of the Berkman Center for Internet & Society at Harvard Law School. While the group eventually hopes to identify dozens of applications, these four generated significant complaints to, he said.

"We think there's enormous value ... in giving consumers more control and giving them more information before they do something that could be damaging to their computers," Palfrey said. "The longer term goal is we hope that these reports ... will lead the providers of applications to operate more openly and more transparently."

Three of the four applications have deceptive installation mechanisms, three modify other software on the user's computer and three are difficult to uninstall completely, according to the report. However, none of the four violated's guidelines against hurting other computers, and only one, Waterfalls 3, transmits private data to other sources, the group said.

Sharman Networks, which distributes Kazaa, disputed the report. The software does distribute adware, but "this is made clear to users," said Felicity Campbell, a spokeswoman for the company. Users can also update for US$29.95 to stop the ads, or uninstall Kazaa, she said.

Campbell also disputed the report's findings that Kazaa is difficult to completely uninstall, blaming a glitch in the Microsoft Windows operating system for making it appear as if Kazaa files remain. "The glitch simply implies that everything hasn't be uninstalled even though it has," she said.

The three other companies providing the identified software packages were not available for comment.

Without and other watchdogs, users might stop using computers that can download innovative new applications, instead buying locked-down devices that limit choices, said Jonathan Zittrain, co-director of and professor of Internet governance and regulation at Oxford University.

"If we don't solve this problem, then my concern is consumers will gravitate naturally from PCs that are capable of running code from nearly anywhere on the Internet," he said. "Those [locked-down] PCs will have gatekeepers, and some great piece of code won't be able to find an audience."