(LONG_WINDED_NERD_POST_FOLLOWS)
Kodi has developed an undeserved and incorrect reputation due to some unscrupulous individuals.
"Open Source" is the name for software that anyone can develop. The basics of the code are out there, freely modifiable. You can make it into anything you want. The catch is, you have to release what you create largely free back to everyone else. The specifics are more complicated, but that's the basic idea.
"Kodi" started out as a project to let Xbox owners use their Xboxen as media centers. Usually, on a home network, a "media center" streams video, picture, or audio files saved on your home PC to a useful device like a TV or stereo. Hence, it's original name was "XBMC" (X-Box Meda Center). After polishing, user interface enhancements, and a new coat of paint, it got the name "Kodi".
Kodi by itself is just a streaming engine. When running Kodi, you have the basic input/output to make media files do stuff. However, to actually use it for anything, you have to install "add on's" to Kodi. This is where it gets its power and becomes extensible.
Originally, the add-ons focused on streaming stuff from your home PC. Then, add-ons to stream stuff from Anime sites and other popular media troves were added. This began to skirt the bounds of legal use, but it wasn't prevalent enough to kick static.
Of course, things grew. There are tons of websites around the globe that host copies of theatrically released movies and television shows. These movies and shows have copyrights which exist with their creators - and the websites don't have permission to host them. These copyright holders don't much care for anyone downloading free software and viewing their intellectual property for free.
Kodi's add-ons also connect to IPTV sites. IPTV stands for, well, IP (internet protocol) TV (television). That's some guy (or group) who has their cable box connected to a transcoder. That transcoder takes the live channels coming off the cable box and makes the live feed available for viewing to anyone connecting to that stream. These streams are available worldwide, and from anyone in the world. However, they only work as long as the guy doing the transcoding stays connected and publishes his stream. Again, those channels are owned by intellectual property rights holders that aren't too keen on giving it away for free. They shut them down when they can find them.
Well, add it all together, and you can see where somebody would load Kodi on some type of device, like a Roku or Fire TV, configure those add-ons to connect to movie and IPTV sites, and then sell them on a website with an advertisement of "Never pay for cable again! Watch new release movies! All your favorite channels! For Free!" They'd sell them for $200, and of course, they'd sort of work. As Kodi users know, the connections aren't guaranteed. However, these criminals didn't care. They'd get your $200 and cut off all support.
Kodi is now fighting a reputation problem as being nothing but pirate TV. Of course, it's naiive to say it doesn't enable access to pirated content, or that its primary use isn't accessing pirated content. However, Kodi itself is NOT pirated content, nor are the add-on authors. Media rights holders, since the scam artists adopted it for a quick buck (in contravention of the GPL, if that matters), are aiming whatever guns they can find at whomever they can find - usually the add-on authors since they're usually private individuals with no easy defense.
Like whole "Napster" thing of the late 90's, they've begun a whack-a-mole game where rights holders sue, someone gets shut down, someone else picks it up, hardens the product, and tries again. It's annoying, but futile.
(END_LONG_WINDED_NERDITRY)