Basically there's laws governing businesses. In the uk if a business pc is used to down load illegal / copyrighted material without being a license holder then the MD / Director is held directly and PERSONALLY responsible for that breach.
Thats why in most businesses there is a employment contract (i.e. I will give 4 weeks notice, not turn up to work drunk etc.) and an IT one (I will not download porn, use equipment illegally, abuse resources etc.)
And yes AppKiller requires to be installed on each PC.
Spirit is correct it will need installing on all PC's which is why i said if it's a small number of PC's.
I would recommend a review of your acceptable use policy, if you don't have on then it's about time you did. If they breach it then you can make it a HR issue.
Great suggestion by using GPOs. However do you know of any sites that list common apps which administrators block along with their executable names? (i.e. bearshare.exe, limewire.exe, etc.)
I used IMLogic which works quite well, it has been purchased by Symantec so we should see that tool again in near future.
It was free now we'll have to pay for it.
I don't think there is i'm afraid some companies run a white list where you only allow the exe's for your approved applications. This can require some testing to setup.
I would also look into the acceptable use policy and removing users admin rights so they can't install the software. You can use restricted groups in an Active Directory environment to remove them from local admins.
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