Computer Gurus, can you settle a debate please?

Me and a few of my techy-chums have been arguing over what definitions constitute spyware/viruses. My colleague who thinks he knows everything about computers said that a cryptographic key, ie a key-gen program, does not actually contain trojans or viruses. He hypothesizes that the anti-virus software has simply had their definitions picked up and downloaded as to deter uses from hacking or obtaining illegal p-codes. I have said that they do contain such nasties and should not be opened for fear of damaging your hard drive and data. Please tell me I am right. There's a small wager on this now.