It's just not worth a company risking this kind of tampering. They could go to jail for that.
By all means, companies should fight back legally, and it sounds like they all are. I applaud them for that. But I think it's unreasonable to expect them to break the law for you.
It's morally wrong, and obviously I'm not saying it's the way to go. It's just a theory that I had, and I wanted to know if it was feasible for a company to do this.
By them NOT WORKING?
A lot of people have already stated that one way around this would be to change your password before the feds have had a chance to crack the provided hashes. This would surely be a similar system.
Of course, I don't know if this would work at all. I was basically thinking aloud to see if this idea would have some merit.
Let's say a request is made for Google give over loads of Gmail passwords. Could they not silently implement an extremely strong password encryption on the affected accounts, and hand over these passwords, knowing that the feds wouldn't be able to crack them without a significant amount of time.
Also, are the feds likely to check to see if these passwords are legitimate? If my password was 12345 and Google simply told them that my password was 54321 then how could the feds possibly know that the passwords sent over are real?
EDIT: Obviously, I know this is highly illegal, and would land any company in trouble. I'm just wondering whether, theoretically, this is possible for a firm to do to circumvent any action from the feds.