In this paper, we introduce a new fine-grain distributed information protection mechanism which can self-protect, self-discover, self-organize, and self-manage. In our approach, we decompose data into smaller pieces and provide individualized protection. We also provide a policy control mechanism to allow "smart" access control and context based re-assembly of the decomposed data. By combining smart policy with individually protected data, we are able to provide better protection of sensitive information and achieve more flexible access during emergency conditions. As a result, this new fine-grain protection mechanism can enable us to achieve better solutions for problems such as distributed information protection and identity theft.