IP Privacy configures your web browsers to use anonymous proxy severs, hiding your true identity when you're on the internet.
The web is full of snoopers, spyware, and people who want to steal your private information. IP Privacy ($39, 3-day free trial) can help protect you against them by helping you surf anonymously - that is, hiding your IP address and other personal information that websites can gather about you.
IP Privacy does this primarily by configuring your web browsers to use anonymous proxy servers. Your browser in essence browses the web by way of those servers, which hides your identity as you surf. IP Privacy finds the servers for you, tests to see that they're working, and then sets your browsers to use those proxy servers.
The technically minded can do this themselves, without use of software, by fiddling with various settings. IP Privacy isn't for them. Instead, it's for those who worry about their privacy, but aren't technically proficient enough to set up proxies themselves.