Pennsylvania Patent of the Month – December 2021

The security of our data and information has floated in and out of headlines for the past few years as people have come to notice how our information can be taken advantage of. As the online world grows so must our security protocols. There are industry standard practices to restrict access to private information or to encrypt the data. However, sometimes this information needs to be shared across devices. Sharing required the data to be unencrypted beforehand, compromising the security of the information.

Powch, LLC is a startup working towards improving this system. They have developed a secure distributed information system which allows for the sharing of encrypted data when you want, and only with those you specify.

This system works for confidential information like health records, banking information and more. To enable sharing from one device to another, this system automatically transmits portions of encrypted data and additional tokens (eg. password, salt value, key location identifier, etc.) to the recipient device. The recipient device uses these to download a decryption key and then decrypt the desired data. The sharing device must first grant authorization to allow the recipient to download this decryption key. Authorization can be revoked at any time.

The use of encrypted data and tokens to authenticate identity of the recipient allows the effective transmission of encrypted data as the recipient is granted the decryption key. They can then access the secret data from their own device. With this system in place, you can access your secure data from any device without worrying about its security.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at or contact your usual Swanson Reed representative.

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