Embodiments of a portable data storage device and a method of protecting data stored in the portable data storage device are provided. In one embodiment, the portable data storage device includes a device identification unique to the portable data storage device, a rights object containing information indicative of access rights and a verification identification, a memory to store the device identification and the verification identification, and controller logic. The memory is partitioned into a plurality of areas of memory, including: a first area as a protection area to store an instruction code, a second area as a partition table area to store a partition table, and a third area as a file area to store data files. In response to a request from a client external to the portable data storage device, the controller logic compares the verification identification with the device identification to allow the client to access of the data files if the verification identification matches the device identification.