Yes they can. And that's how it should be in my opinion. Every time a company is demanded to hand over documents or information about an investigation, that is what happened. A company was ordered to do involuntary work. And it's fine as long as we make sure to keep the warrants in check and not rubber stamped.

Drawing the line at software is arbitrary and does a disservice. It's that same narrow minded view of software (as being somehow different than the physical world) that leads to idiotic things like treating email inboxes different than physical inboxes.