It began as a seemingly innocuous marketing tool, but spyware soon became one of the most pernicious problems the Internet has ever faced. Whether through pop-ups, privacy invasion, or drained computer power, practically anyone who has used the Internet has been victimized by this trend. The issue, which continues in full force today, has been increasingly scrutinized by the courts and legislators.

As programmer Bram Cohen unveils BitTorrent at a hacker conference in San Francisco, file sharing becomes Hollywood’s problem.

Corporate troubles across US, after Enron, SEC files fraud charges against WorldCom after the company admits to inflating profits by $3.9 billion; 17.000 people lose their jobs.

In other news:

• Microsoft’s Internet Explorer market peaks at 96 percent.
• 9 of 10 American school children have access to computers at home or school.
• On the Web, creators of online journals, or “web logs,” now “blog on.”
• Pop-ups and pop-unders clutter computer screens.
• DVD sales pass VCR sales; 40+ million U.S. homes have DVD.
• 70% of U.S. households could have broadband service; 15% use it.
• Amazon.com stocks more than 350,000 titles.
• UK workers spend more time with email than with their children.
• Apple computer that can create movies in DVD format.