The intellectual property detailed in this post was developed by Sports Data Labs, Inc. The granted patent, identified by the Patent Number 12696878, is titled Animal data compliance system and method.
This invention won the Patent of the Month for the Michigan state for the month of September 2026, an award granted by Swanson Reed. This recognition highlights the technological development involved in creating a system for data governance and digital rights management.
Understanding the Innovation
The invention is innovative because it addresses a specific problem regarding the distribution of biological data. Prior to this system, data owners did not have a reliable digital mechanism to associate specific usage rules and restrictions with their shared data. This technology allows a central computing device to collect data from targeted individuals and automatically link it to specific terms of use. When the data is distributed to receiving computing devices, those systems are immediately informed of the approved uses and restricted actions. By embedding these rules directly into the data exchange process, the system prevents unauthorized use and establishes an automated compliance network.
Swanson Reed Patent of the Month Recognition
Swanson Reed granted this technology the Patent of the Month award for the Michigan state in September 2026 due to its technical merit. The award recognizes companies that invest in solving technical problems through research and development. This compliance system was selected because engineering a platform capable of handling data streams while enforcing dynamic permission rules requires significant software architecture and algorithmic design. It demonstrates a practical solution to a known industry challenge regarding data privacy and ownership.
R&D Tax Credit Eligibility in the United States
The practical applications of this patent make it a strong candidate for the Research and Development Tax Credit in the United States. Developing the software required to implement this compliance system involves technical uncertainty. Software engineers must design custom algorithms to match data with specific rules, build secure transmission protocols, and conduct testing to ensure the receiving computing devices correctly interpret and enforce the restrictions. These development phases involve a process of experimentation that is technological in nature. Therefore, the expenses related to designing, coding, and testing this data compliance architecture would likely qualify for the R&D tax credit under Section 41 of the Internal Revenue Code.
