Patent 27 / Privacy Governance Engine
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Siten Sanghvi  ·  Granted Aug 12, 2025  ·  Sole Inventor

Privacy Governance Engine

A data governance middleware layer for transaction processing: when a transaction arrives, the engine parses it into individual data elements, classifies each element by category — PII, financial, behavioral — selects the appropriate rules engine per category, generates encrypted secure versions, stores them on a distributed ledger, and sends decryption keys only to the specific nodes authorized for each data category. Each node sees only what it's permitted to see.

US12386982B2Patent
Nov 29, 2022Filed
32 monthsTime to grant
20 Claims / 3 independentScope
Sole InventorSiten Sanghvi
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02 / The Problem

Transaction data reaches every node in the processing network — but not every node is authorized to see every element of it.

Financial transaction processing involves many nodes: fraud detection, compliance, settlement, analytics, customer service. Each node legitimately needs some subset of the data in every transaction. But traditional architectures broadcast the full transaction record to all processing nodes — every node can see everything, even elements it has no business purpose to access. PII reaches analytics nodes. Behavioral data reaches settlement nodes.

Over-Sharing by DefaultBroadcasting full transaction records means every node accumulates data beyond its authorized scope — creating unnecessary exposure surface for privacy breaches and regulatory risk
No Per-Category EnforcementEven when data categories are defined in policy documents, enforcement at the technical layer is manual or absent — policy and architecture aren't coupled
Consent Not Reflected in RoutingWhen a user adjusts their privacy preferences, that preference change rarely propagates into the routing and encryption decisions that determine which nodes actually receive their data
03 / The Invention

Parse → classify → apply category rules → encrypt → route. Each data element only reaches nodes authorized for its category.

The engine intercepts incoming transaction data and runs it through a multi-stage pipeline. First, parse: extract individual data elements from the transaction record. Second, classify: assign each element to a data category (PII, financial, behavioral, etc.). Third, apply: select the rules engine specific to each category and execute it against each element.

The output is a set of encrypted "secure" versions of each data element, stored on a distributed ledger. The engine then generates targeted notifications: each authorized node receives a notification and the decryption key for the specific data categories it's authorized to access — and only those. A compliance node gets the compliance-category key. It does not receive the PII-category key. Data partitioning is enforced at the encryption layer, not just the policy layer.

04 / Processing Pipeline

Six stages from transaction arrival to authorized-only distribution — all in a single middleware intercept.

The pipeline is defined in Claim 1 (apparatus) and Claim 11 (method). Three independent claims cover the core system, the method, and a CRM variant — giving the patent broad coverage across system architectures that implement the same data governance logic in different deployment contexts.

Governance Pipeline — US12386982B2
1
Receive Transaction — transaction data arrives at the governance middleware intercept point
2
Parse Elements — transaction record decomposed into individual data elements (name, amount, location, timestamp, account ID, etc.)
3
Classify by Category — each element assigned a data category: PII, financial, behavioral, compliance, or other defined category
4
Apply Rules Engine — category-specific rules engine selected and executed against each element in its assigned category
5
Encrypt & Store — secure versions of each element encrypted and stored on distributed ledger; each category encrypted with its own key
6
Targeted Notification — each authorized node receives notification + decryption key for its specific categories only (Claims 2–3, 4/7/14/17, 5/8/15/18)
05 / Category Partitioning

Each data category has its own encryption key. Nodes only receive keys for their authorized categories — never a master key.

Claims 5, 8, 15, and 18 define the partitioning model: data categories are partitioned such that each target node only receives the decryption key for data elements within its specifically authorized category. The fraud detection node receives the fraud-signal key. It does not receive the PII key. The analytics node receives behavioral data access. It does not receive payment account details.

Claims 4, 7, 14, and 17 establish that the notification itself carries the decryption key — the key delivery is bundled with the notification, not managed separately. Claims 2–3 specify that distinct notifications are sent to different target nodes rather than a single broadcast, so each node receives a notification scoped precisely to its access rights.

Per-Category Key Architecture — US12386982B2

PII Category

Customer name, address, government ID. Key delivered only to compliance node and customer service node. Analytics, fraud, and settlement nodes receive no PII key.

Financial Category

Transaction amount, account numbers, balance signals. Key delivered to settlement, fraud detection, and compliance nodes. Analytics and behavioral nodes excluded.

Behavioral Category

Transaction patterns, velocity, geo-signals, time-of-day patterns. Key delivered to fraud detection and analytics nodes. Settlement and PII-focused nodes excluded.

Consent-Adjusted Routing

Claims 9–10, 19: user privacy preferences registered in system. Routing decisions reflect current consent state. Preference changes propagate to key distribution for future transactions.

06 / Flow Simulator

PII data element, financial element, user opt-out, and incentive-based consent modification — all defined in the claims.

Select a scenario to trace the governance pipeline from transaction arrival to category-specific key delivery.

Privacy Governance Scenarios
07 / Consent Management

Claims 9–10 and 19: users register privacy preferences, the system can offer incentives to modify them, and routing updates accordingly.

The consent management layer (Claims 9–10, 19) adds a two-way preference loop. Users register privacy preferences with the governance platform. These preferences are stored and associated with the user's data categories. Routing decisions for future transactions reflect the current preference state.

The behavioral incentive mechanic (Claims 10, 19) is notable: the system can identify preference changes that would benefit system operations and offer the user an incentive to modify their preference registration. The user sees the incentive offer, accepts or declines, and the system updates the registration based on the response. This isn't data sharing without consent — it's a structured mechanism for negotiated consent modification with explicit user action at each step.

Consent Layer — US12386982B2

Preference Registration

Claim 9: users register specific privacy preferences per data category. "Do not share behavioral data with analytics" → behavioral category key not sent to analytics node.

Routing Enforcement

Preference state is consulted on every transaction. Real-time routing decisions reflect current consent — not a historical snapshot from account setup.

Incentive Mechanism

Claim 10/19: system identifies beneficial preference changes, presents an incentive offer to the user (rate discount, feature unlock). User accepts or declines explicitly.

Registration Update

After user response, system updates preference registration. If accepted, routing expands accordingly. If declined, routing remains unchanged. User retains control at every step.

08 / Applications

Privacy-by-architecture for any multi-node data processing pipeline where different participants have different access rights.

The governance engine pattern applies to any architecture where a transaction's data elements must be partitioned across a network of participants with asymmetric authorization levels. The encryption layer enforces what policy documents only describe.

Use Cases — US12386982B2
Express
Financial Transaction Processing Customer makes a payment. Governance engine parses: name → PII category → compliance node gets key. Amount → financial category → settlement + fraud nodes get key. Merchant category → behavioral category → analytics node gets key. Settlement node never sees the customer's full name. Analytics never sees account numbers.
Express
GDPR / CCPA Enforcement User invokes right-to-limit under GDPR. Governance engine updates preference registration: behavioral data category key no longer delivered to third-party analytics nodes. Enforcement is architectural, not procedural — there's no way for an analytics node to access behavioral data it doesn't receive a key for.
Express
Distributed Ledger Audit Trail All secure versions of data elements stored on distributed ledger with full audit trail. Compliance team can verify which nodes received which categories for any transaction — without needing to see the underlying data. The ledger proves access authorization history.
Inferred
Healthcare Data Routing Same pattern applies to medical records: clinical data → care team key. Billing codes → billing node key. Insurance signals → payer key. Research data → (consent-dependent) research node key. Each participant receives only the categories they're authorized for — enforced by encryption, not just policy.
09 / Citations

Forward Citations

One third-party citation found. Full list available on Google Patents.

Forward citation check: Jun 22, 2026 · Static fetch; Google Patents citations are JS-rendered
Forward Citations — US12386982B2
Wells Fargo Bank N.A. Feb 19, 2026 US20260050587A1 "Systems and methods for data reconciliation using a ledger architecture" — Wells Fargo cited this patent in the context of distributed ledger-based data governance and category-specific data access control.
10 / Sole Inventor

One of two sole-inventor grants. Twenty claims covering apparatus, method, and CRM variants.

US12386982B2 is one of two patents in this collection with a single inventor. The three independent claims cover the system from three different technical angles: Claim 1 (computing platform / apparatus), Claim 11 (method), and Claim 20 (CRM — a computer-readable medium variant). This triple-independent structure maximizes the defensive coverage of the core governance architecture.

Patent Scope — US12386982B2

Sole inventor. This patent was developed independently — a single architectural vision for privacy-by-encryption in transaction data routing, from conception through the 32-month examination process to grant in August 2025.

Claim 1 — Apparatus

Computing platform with processor and memory. Covers hardware/software systems implementing the governance pipeline. Broadest system-level claim.

Claim 11 — Method

Method claims cover the process steps regardless of specific implementation. Broader than apparatus — applies to any system executing the governance sequence.

Claim 20 — CRM

Computer-readable medium variant — covers distributed software implementations, cloud-native deployments, and containerized governance middleware.

32-Month Prosecution

Filed Nov 29, 2022 → granted Aug 12, 2025. Longest prosecution in Batch D — reflects the depth and novelty of the privacy architecture examined.

11 / Timeline

Patent Lifecycle

Nov 29, 2022
Filed
Application filed — B2 patent
18 months
May 30, 2024
Published
Pre-grant publication US20240176896A1
14 months
Aug 12, 2025
Granted
US12386982B2 granted — 32 months from filing
~18 years
Nov 1, 2043
Expires
Adjusted expiration with Patent Term Adjustment
End / Patent 27