Torrent is a system that allows people to share files. The Pirate Bay is a search engine specifically for torrents. It tells your computer where the file can be found.
Once you find a file that you want to download, you have to use a torrent software, like utorrent. Then you download the file from all the people sharing it. If you have files on your utorrent already, you will share it with other people who want the same file. This is called seeding.
Torrents are not illegal, it's what is in some torrents that are illegal. It's the equivalent of someone burning an illegal DVD copy of a movie. They wouldn't ban DVD's.
If you want to learn more about bitorrents then check out BitTorrent For Dummies
. It will teach you all about torrents and how it works.
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