If Cops Don't Know What You Encrypted, They Can't Make You Decrypt It
forbes.com
forbes.com
For example: if you have 13_year_old_girl.jpg.pgp, it could be reasonably argued that the content of the encrypted file is "known," and decryption can be forced. If, however, you have a TrueCrypt partition called "images," there is plausible deniability due to the very nature of a TrueCrypt container - so everything within would be considered protected.
It's an interesting case, with serious ramifications - for example, if a hacker stole source code and put it in a TrueCrypt container and was subsequently raided, it would be significantly harder to prosecute without incriminating evidence.
It's the same with police car searches. You have the right to refuse a search, if they don't have probable cause, because even you might not know if there is something in there that could get you arrested. If that works for car searches, I think it should work just the same for encryption.
This is a good article on it:
http://www.huffingtonpost.com/scott-morgan/5-reasons-you-sho...
(http://www.legislation.gov.uk/ukpga/2000/23/contents_
(http://en.wikipedia.org/wiki/Regulation_of_Investigatory_Pow...)
And does this apply to people crossing borders?
(https://www.eff.org/deeplinks/2008/05/protecting-yourself-su...)