Today while I was trying to make a backup of some files for a website I was about to modify I received the above error. After some googling I found that the general answer to this problem was to check your temporary folder permissions. I did this and found nothing wrong with the permissions. I gave up on the idea of using zip to backup my stuff and to just copy the folder. When I copied the folder I found out that there was another ZIP file buried deep in the folder structure that needed some special permissions to copy. Since the file was not needed I deleted it and tried to zip the directory again and it worked!

So if you ever get the above error, just search the source folder for *.zip and see if there are any protected zip files in there as that could be the cause of your issue.