In some countries, e.g. Britain, refusal to disclose a password to the 'proper authorities' upon request is a felony. This is still working its way through the US courts as 'self incrimination', but I'm not optimistic. Suppose some standard encryption app allowed the user to encrypt a file in the usual manner with a password, then upon request scrambled the password, in a way the user didn't know and couldn't recover, then stored the encrypted, unreadable file (or didn't scramble by choice.) Info as to whether the password had been scrambled totally erased so no external authority could tell the difference. If enough people did this wouldn't that give enough legal doubt so as to avoid persecution for not revealing when ordered, especially if that particular file, and many others on many other computers, were indeed unrecoverable. Might need some standard disclaimer on all encrypted files. You probably don't want to be the only one to do this.