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How does Internet Explorer grant extra power to applets?

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How does Internet Explorer grant extra power to applets?

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You first have to code sign an archive containing your applet. When the archive is loaded by Internet Explorer, it will immediately ask the user if he trusts the developer. If yes, then the applet runs with full access to the user’s machine. If no, then Explorer tries to load the applet using the individual .class files; if it succeeds, it runs the applet with restricted permissions.

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