[jiggy2011]

He says "plant bugs in machines" , so that would seem to imply malware of some variety.

[_bfhp]

The FBI already plants or at least attempts to plant malware on targets (recently: http://www.slate.com/blogs/future_tense/2013/04/25/texas_jud... and regularly: http://www.wired.com/threatlevel/2009/04/fbi-spyware-pro/ )

Also, judges can now order people to decrypt whatever ( http://www.wired.com/threatlevel/2013/05/decryption-order/ )