Q: I didnt encrypt my backup files but it is locked and I cant restore my new iphone

You can't remove the password from an encrypted backup:

Warning: If you encrypt an iPhone backup in iTunes and then forget your password, you will not be able to restore from backup and your data will be unrecoverable. If you forget the password you can continue to do backups and use the device, however you will not be able to restore the encrypted backup to any device without the password. You do not need to enter the password for your backup each time you back up or sync.

If you cannot remember the password and want to start again, you will have to do a full software restore and when prompted by iTunes to select the backup to restore from, choose Set up as a new device.

 

copied from http://support.apple.com/kb/HT1766 "About backups"

Right there with you mate.  All I want to do is stop my future backups from encrypting but for some reason iTunes has AUTOMATICALLY decided that all backups will be encrypted from now on.  As it has done this for me (I have never requested this) I have no idea what the password is and so now (according to some very unhelpful Apple drones) I have no choice but to sacrifice time and data.  When are Apple going to admit this farce and offer users a realistic solution to the mysterious encrypted backups situation?  I for one give it 3 months before I move to Android at this rate.

@Tom
As provided, to stop the backups from being encrypted, set it up "as new iphone" without using the backup.
After that your backups will not be encrypted anymore.

There are no Apple drones here, just users like you, trying to help other users.

Yeah, the solution presented tells me I'm going to lose all my data (as thanks to an apple tech I have no unencrypted backups to revert to).  Are you proposing I erase my device just forget my data?

Sorry, there is no other way to stop iTunes encrypting your backups.
Follow this article to transfer as much data as you can and set it up "as new iphone" http://support.apple.com/kb/HT4137

Again, not really that helpful.  Ho hum, basically coming from a PC background "there is no way..." is not a phrase I am used to hearing being applied to IT.  If you seriously telling me that I have to sacrifice data , "in-app" purchases, created content, etc.etc. to do this then I will be either a) jailbreaking my device or b) going Android.  Either way I'm less likely to have to deal with this bullspunk in future.

Thanks for nothing.

Look, get over it. It is what it is. Move on, and stop posting to every thread you can find regarding this. If there were an easy way to bypass the encrypted backup feature, well, there wouldn't be much point in having it in the first place. Jailbreaking your phone won't solve your problem either. Sell your phone and buy something else.

If the phone has been provisioned for a corporate account with a secure Enterprise provisioning profile iTunes will require that the backup be encrypted, and there is no way to override this. This will happen automatically when the phone is connected to an Exchange account that includes a provisioning profile, and there is no way around it short of restoring the phone as new. So is the phone in question used with a corporate account?

Great that is exactly what I was expecting, especially from reading some of your previous responses.  Perhaps your pearls of wisdom should be bookmarked for future reference.

"If you have a problem with glitchy Apple software that neither we or Apple can solve, get over it and sell your Apple product!". You make a wonderful ambassador for Apple! 

Tell you what, I think I will follow your advice and when I write to Cupertino to inform them why I will be striking Apple products from my organisations procurement register I will tell them I am basing it on your recommendation.

Have a nice day.

The original posting said clearly that he didn't choose to encrypt the backup, and choosing to backup without encryption going forward, cannot be deselected without entering this mystery password that has not been set. This happens frequently to other people. Your posting infers that he set a password. Also, choosing to setup the iphone as new, will delete the information he is looking to back up. I'm looking for a solution to this as well and have found nothing.

See my message below this one.

The issue I just dealt with happened to involve an individual without being attached to any IT server. This was a private individual looking to backup his old phone to his new one. He had never used his phone for work purposes. Your suggestion was viable if that were the case. Not to be rude. Sorry if it came across that way. Some suggestions here on this discussion board are given out as a general response that you'd hear from tech support with a KB that is not relevant to the original issue.

I too was experiencing multiple software/hardware problems and was told to restore my phone by customer support.  Lost all notes, photos, etc.  Would have never attempted the fixes if I had been properly warned.  Apple support assured me all data would be restored.

I love my Iphone, but hate the drama.  I will be updating soon and am on my way to an Android.

The encryption password problem is the last straw.

I feel for you MimiSeven I'm havin a few problems with my iPad still revolving around an encryption password I never set.  Unfortunately no one on here or Apple phone line tech support is helpful so I feel I will be joining you in moving to Andoid.  I might also see if I can't sell my iPad if I can load it with Android instead of an operating system (iOS) that doesn't seem to care about personal data.