From the Wikipedia:
"Cipherspace or cypherspace is the encrypted (and often pseudonymous or fully anonymous) equivalent to cyberspace. Examples of cipherspaces include Freenet, I2P, Tor, and some anonymous mail-forwarding services.
According to its advocates, it should be impossible to know the actual identity of anyone in cipherspace. Therefore, it would be impossible to impose any censorship and to enforce any law. Because of that, they assert that concepts like copyright would be unenforceable inside cipherspace. Some doubt the possibility of complete anonymity, citing that real networks, even virtual private networks, need access to external resources, which tend to be trackable.
Critics of the cipherspace argue that such a "digital zone" cannot be legally validated and would need to become illegal, as anonymity is both antisocial and protective for any kind of illegal acts." (http://en.wikipedia.org/wiki/Cipherspace)