replied on February 28, 2014
This is likely a limitation in the formatting of the file. Usually, you have the option to password protect most file types. I can only assume that since zip files are not something it can tell if it is already password protected or not, that it will not allow you to password protect the zip file.
Also, when I tested the functionality out with a PNG, it turned it into a pdf file in order to password protect the document. Since Laserfiche cannot convert the file to a PDF it cannot allow you to password protect it.
These are theories as I do not have much experience being on the receiving end of a protected file from Laserfiche.