diff --git a/g10/ChangeLog b/g10/ChangeLog
index a6a2f6d43..3f824b122 100644
--- a/g10/ChangeLog
+++ b/g10/ChangeLog
@@ -1,5 +1,8 @@
 2010-03-12  Werner Koch  <wk@g10code.com>
 
+	* plaintext.c (setup_plaintext_name): Do not encode pipe like
+	filenames.  This helps with bug#1201.
+
 	* seckey-cert.c (do_check): Return GPG_ERR_CANCELED.
 	* keyedit.c (change_passphrase): Add arg R_ERR.
 	(keyedit_passwd): Return the correct error or emit a success
diff --git a/g10/plaintext.c b/g10/plaintext.c
index 027fe994c..34e18f65f 100644
--- a/g10/plaintext.c
+++ b/g10/plaintext.c
@@ -623,7 +623,8 @@ setup_plaintext_name(const char *filename,IOBUF iobuf)
 {
   PKT_plaintext *pt;
 
-  if(filename || opt.set_filename)
+  if ((filename && !iobuf_is_pipe_filename (filename))
+       || (opt.set_filename && !iobuf_is_pipe_filename (opt.set_filename)))
     {
       char *s;