Yes this is the first time I have heard the new term "policeware" too
http://arstechnica.com/news.ars/post/20080227-german-court-says-policeware-a-violation-of-privacy.htmlGovernment surveillance of citizens' personal computers is a violation of privacy, Germany's highest court ruled today. Citizens' basic right to privacy is protected by Germany's constitution, the court said, a protection that extends to their stored data. "Collecting such data directly encroaches on a citizens' rights, given that fear of being observed... can prevent unselfconscious personal communication," said Judge Hans-Juergen Papier in the court's opinion.
The case began last year when officials in North Rhine-Westphalia began spying on computer-related activities using trojans and spyware (also known as "policeware"). The government apparently had few problems with this, saying that such activities were important in the fight against terrorism.
Papier disagreed, saying that the North Rhine-Westphalia law was unconstitutional and that his ruling would set a precedent for the whole country on how to treat individuals' privacy. He did rule, however, that the state could employ some surveillance services under extreme conditions, but doing so would require prior permission from a judge.
Lets hope this is in line with how most folks see the judiciaries responsibilities, its easy for this arguement to go either way but it does seem a few sensible safeguards are to be employed and for this folks can only be thankful.