These are usually anti-spyware or security software applications that use various forms of deception and/or unethical means or show a history of negligent false positives to goad the end user to make a purchase.
In some cases these applications maybe downloaded with some form of unwanted software at which point the rogue application is offered to the customer as a way to remove the unwanted software.
Spyware Quake is associated with SpyAxe, SpyFalcon & SpywareStrike.
Spyware Quake is normally bundled with different trojans as a way of installation. These trojans normally have the ability to alter your desktop to an html page that will warn the user of a spyware infection.
Spyware Quake can report false detections of spyware to scare the user into purchasing the product to remove the false infections.