"Then, some servers had downloading for most everything turned off by default, and would require that you do something in order to gain full downloading privilages. For instance, you may have had to download a video that was copyrighted by the server owner. This video was market 'absolutely not for distribution-- copyright so-and-so' and it was the only file guests could download. There might be some graphic text in the video itself, and that graphic text was a password that would allow you to create a real account.
This way, an enforcement agent would first have to engage in a real copyright violation to gain download access and see what was on the server. If that agent then later tried to sue the server owner, for copyright violation, the server owner could turn around and file a counter-complaint for copyright violation since the file he had to download to even get on the site was copyrighted by the server owner.
Actual law enforcement might just laugh at such a scheme, but a corporation wants to avoid being sued by individuals -- a corporation suing an individual is not an easy case to win before a jury, but an individual suing a corporation is an easier case to win, with greater potential for damages. If a corporation has to violate copyright law in order to continue with an investigation that may not even yield any results, they might just give up and go crack down somewhere else."
"Passwords used for things like encryption might be flawed in that some courts can force you to reveal a password. So consider instead using 'self-incriminating pass phrases'. A court can't compel you to reveal self-incriminating information. If your password contains references to past crimes or the like. It doesn't even have to be true. Your passphrase might be that you stole military secrets and sold them to an enemy of the state. Or that you committed some crime that has not been solved. Make sure it is illegal, and either directly applies to the matter or is something so serious that no one in their right mind would actually want to actually grant you immunity from."