Below is the official word from Microsoft.
Security Essentials is antimalware software, which means that it's designed to detect and help protect your computer against a wide range of malicious software, including viruses, spyware, and other potentially unwanted software. Windows Defender, which is automatically installed with your Windows operating system, is software that detects and stops spyware. To learn more about Windows Defender, visit the Windows Defender Web site.
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