I have a hardware kvma switch. I think what the OP is talking about is network based software that detects when you move the mouse "off screen" and switches the focus, so to speak, to the other machine just with the mouse movement. It probably requires
drivers or at least services to be run on both systems. But it is out there. Only problem with that approach is if you have a bit of a network glitch stuff stops working. But if your setup is stable(you don't do stuff like programming for example) then it may be fine.
I've tried a couple of demos but it was a few years ago. Don't recall the names.
Usually you can do stuff like select text on one PC, copy to clipboard, and paste it in applications on the other machine. Some may also support graphical data, but text is definitely common.