In San Francisco California, an FBI spokes person confirmed on Wednesday that they are working on a trojan horse called "Magic Lantern"

"It is a workbench project" that has not yet been deployed, said FBI spokesman Paul Bresson. "We can't discuss it because it's under development."
A program that can log keystrokes of suspected criminals. Though FBI says that they would require a court order to proceed to using the program.

Major antivirus vendors this week said they would not voluntarily cooperate with the FBI and said their products would continue to be updated to detect and prevent viruses, regardless of their origin, unless there was a legal order otherwise.