greyware is the class of programs that are neither clearly good nor clearly bad... the world, unfortunately, is not just black and white, there are shades of gray and that is where grayware gets it's name... it's also called things like potentially unwanted programs, potentially unwanted applications, and other variations on that theme...
greyware represents the cases where the context sensitivity problem of the trojan definition is particularly acute... for example, commercial keystroke logging software can fall under a number of malware categories like keylogger, trojan horse program, and even spyware, but if it's used by upper management to keep an eye on what employees are doing with corporate assets or if it's used by correctional agencies to keep track of what convicted felons do online then there's an argument for not calling it malware at all...
another example is adware that gets bundled with conventional software to help offset the cost of that software... if the user knowingly and intentionally accepted the trade-off of viewing ads in order to use the software for free then there's nothing wrong, but if not (and this is often the case) then it's malware...
as should be clear, greyware does not have a functional definition... it would be nice if we didn't see that sort of thing, if we could call something bad or good solely by virtue of what it does, but unfortunately only a black and white world has that property...
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