Comment You may be compelled to decrypt it anyway (Score 4, Interesting) 324
Back when I was at Kazaa many years ago, I kept all my files in a BestCrypt-encrypted drive, and all sensitive emails were PGP-encrypted.
I was feeling pleased - if anyone got hold of my computer, there was nothing to see.
But then one day our office was raided in a search discovery order, and all that time spent encrypting things came to naught, if I refused to hand over anything it would have been contempt of court. And so I printed out thousands of emails in one long continuous unformatted strip... that was about as far as I could go.
I did consider that I could have gone one step further and used BestCrypt's feature that lets you create an encrypted drive that's actually two partitions - give out one key and all you see is nice set of clean files, plus a whole lot of random bytes. It's something to consider, but you're living dangerously if it's a court order.
BTW, there's discussion here about keeping data in the cloud - another tempting option. Broadly the law can compel you to hand over any data "In your control or possession", where possession is defined as including the means to retrieve remote data. So there would need to be zero knowledge of having that remote data at all. Just sayin'