PG2 is, in simple terms, a firewall that uses IP rules to block connections. Even though a company can see your IP because it's connected to the swarm, that does NOT PROVE that you are transferring data. They must physically connect to you and receive data FROM you to know that you are trafficking the content, make sense? So, PG2 is a huge (and I mean HUGE) list of ranges of IP's that are suspect for some reason or another. BayTSP (the biggest, most famous anti-piracy private company) has IP's all over the world, but the fellas who update the lists at phoenixlabs/bluetack are all over them like white on rice, updating those IP's. Lots of universities, government agencies, and companies are blocked as well by default, but you can *unblock* them within the preferences of the program, but I wouldn't. Basically, they can see you, but can't connect to you, so they can't prove you're doing anything, so they leave you alone. However, there pretty much have to be IP addresses that haven't yet been identified, so you can STILL get caught. Like I said in a previous post, security in p2p is mostly an illusion. However, pg2 does a nice job of adding an extra layer of protection. If you need more, check out i2p, but it's slooooooooooooooooow.