Dubbed Secure Blue, the architecture can be built into different microprocessor chips, not just IBM’s, to protect the chip’s security, as well as that of the entire device.

IBM Research reckons that because it is hardware rather than software based, Secure Blue defends against reverse engineering and chip tampering. All documents and software on a Secure Blue-enabled device also can be protected, as well as the keys used for communications security or digital signatures, according to IBM.

The architecture, which needs to be integrated into a microprocessor, encodes the chip to prevent unauthorized use, even from someone with physical access to or control of the device.

This flavor of cryptography can be found in high-end computers, to safeguard them against hackers. But with its on-chip security, IBM claims it has removed an otherwise expensive barrier to the widespread use of crypto-based protection.

Traditionally, encrypting outside the datacenter has been costly and impractical because it requires a lot of processing power to constantly scramble and decrypt data.

Whether such on-chip encryption would step on the toes of security software companies remains to be seen. PGP Corp, for instance, sells encryption software for handheld PDAs.

Intel Corp, the world’s largest chipmaker, also is planning to integrate encryption into a microprocessor with its forthcoming LaGrande technology, as is Advanced Micro Devices Inc with its Presidio. Both use the microprocessor hardware security standard called Trusted Platform Module.

However, these TPM-based technologies requires a separate chip to operate, called a trusted platform module. IBM said Secure Blue does away with this requirement. As such, IBM touts its technology as being low-cost enough to become mainstream in consumer electronics.

Digital media and medical devices, as well as defense systems are also applications for the technology, IBM said. Indeed, the company hopes Secure Blue will become the security watermark in these markets.

IBM’s Technology Collaboration Solutions group will license Secure Blue to clients and partners, as well as provide engineering and design services to build the technology into customer microprocessor designs. IBM said it would also help clients manufacture the product.

An unidentified OEM has reportedly already licensed Secure Blue, but IBM did not provide details.