DCT
2:25-cv-11234
Alpha Modus Corp v. Stratacache Inc
Key Events
Complaint
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Alpha Modus, Corp. (Florida)
- Defendant: Stratacache, Inc. (Ohio)
- Plaintiff’s Counsel: Prince Lobel Tye LLP
- Case Identification: 2:25-cv-11234, C.D. Cal., 11/21/2025
- Venue Allegations: Venue is based on Defendant Stratacache, Inc. allegedly maintaining a regular and established place of business, including an office, in Los Angeles, California.
- Core Dispute: Plaintiff alleges that Defendant’s in-store retail analytics and digital signage platforms infringe eight patents related to monitoring and analyzing consumer behavior to optimize store layouts, manage inventory, and provide targeted marketing.
- Technical Context: The technology at issue involves using sensors, cameras, and data analytics in physical retail environments to gather shopper intelligence, a field aiming to bring e-commerce-style analytics to brick-and-mortar stores.
- Key Procedural History: The complaint notes that the asserted patents descend from family members tracing priority back to 2013 and 2014 applications. Plaintiff also states it has entered into intellectual property licensing agreements outside of litigation and maintains a public listing of its patent portfolio on its website.
Case Timeline
| Date | Event |
|---|---|
| 2013-07-19 | '550 and '731 Patents Priority Date |
| 2014-07-18 | '120, '880, '890, '121, and '718 Patents Priority Date |
| 2021-06-22 | U.S. Patent No. 11,042,890 Issue Date |
| 2021-06-29 | U.S. Patent No. 11,049,120 Issue Date |
| 2022-04-12 | U.S. Patent No. 11,301,880 Issue Date |
| 2024-07-02 | U.S. Patent No. 12,026,731 Issue Date |
| 2024-07-16 | U.S. Patent No. 12,039,550 Issue Date |
| 2025-01-23 | U.S. Patent No. 12,423,718 Publication Date |
| 2025-07-08 | U.S. Patent No. 12,354,121 Issue Date |
| 2025-11-21 | Complaint Filing Date |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 11,049,120 - "Method And System For Generating A Layout For Placement Of Products In A Retail Store," issued June 29, 2021
The Invention Explained
- Problem Addressed: The patent’s background describes the challenges faced by brick-and-mortar retailers competing with online stores, specifically the need to better understand in-store consumer behavior to optimize the layout of products (Compl. ¶22).
- The Patented Solution: The invention is a system that uses "video imaging devices such as cameras, and information monitoring devices" to gather data on customer movements and interactions with products (Compl. ¶25). This information, including shopper traffic patterns and product engagement, is analyzed to generate an improved store layout, with the goal of enhancing purchases and revenue (Compl. ¶23; ’120 Patent, col. 2:25-28).
- Technical Importance: The technology claims to provide advancements such as the real-time analysis of customer traffic and interactions to dynamically improve in-store product layouts (Compl. ¶24).
Key Claims at a Glance
- The complaint asserts independent Claim 1 (Compl. ¶106).
- Essential elements of Claim 1 include:
- Using information monitoring devices (including video) to gather information about shoppers in a retail store.
- The gathering step comprises (A) collecting traffic information (movement, stops, duration), (B) collecting product interaction information (viewed, picked up, carried away), and (C) collecting object identification of interacted products.
- Analyzing the gathered information to generate a "layout analysis."
- Utilizing the layout analysis to modify the store's first layout to "generate a second layout" of products. (Compl. ¶26).
- The complaint does not explicitly reserve the right to assert dependent claims.
U.S. Patent No. 11,301,880 - "Method And System For Inventory Management In A Retail Store," issued April 12, 2022
The Invention Explained
- Problem Addressed: The patent addresses the gap between brick-and-mortar retailers and online retailers regarding real-time inventory management and personalized customer experiences, noting challenges like "showrooming" and stockouts (Compl. ¶33, 34).
- The Patented Solution: The invention provides a method for real-time inventory management that uses monitoring devices to track product interactions (e.g., a product being picked up) and, in response, automatically sends communications to manage inventory, such as directing an employee to re-stock a shelf or adding an item to an inventory order (Compl. ¶35, 36; ’880 Patent, col. 2:20-29).
- Technical Importance: The patented method aims to minimize stockouts and boost sales by enabling immediate, data-driven responses to inventory needs based on real-time consumer behavior (Compl. ¶35).
Key Claims at a Glance
- The complaint asserts independent Claim 1 (Compl. ¶130).
- Essential elements of Claim 1 include:
- Using information monitoring devices (including video) to gather information about shoppers.
- The gathering step comprises (A) collecting product interaction information (picked up, carried away) and (B) collecting object identification information.
- Analyzing the gathered information in real time to "manage inventory."
- Providing a real-time "response" selected from a group of inventory-related communications, such as sending an alert to check inventory, re-stock a product, or contact a distribution center. (Compl. ¶37).
- The complaint does not explicitly reserve the right to assert dependent claims.
U.S. Patent No. 11,042,890 - Multi-Patent Capsule
- Patent Identification: 11,042,890, "Method And System For Customer Assistance In A Retail Store," issued June 22, 2021 (Compl. ¶38, 41).
- Technology Synopsis: This patent describes a method for enhancing customer assistance by using monitoring devices to analyze a shopper's product interactions and sentiment in real-time. Based on this analysis, the system provides personalized responses, such as directing the person to a product location or providing a coupon, to enhance the shopping experience (Compl. ¶44-46).
- Asserted Claims: Claim 1 (Compl. ¶153).
- Accused Features: The complaint alleges the accused products gather object identification and sentiment information, analyze it in real time, and provide responses such as directing a person to a location or offering marketing and coupons (Compl. ¶150-151).
U.S. Patent No. 12,039,550 - Multi-Patent Capsule
- Patent Identification: 12,039,550, "Method for Enhancing Customer Shopping Experience in a Retail Store," issued July 16, 2024 (Compl. ¶48, 51).
- Technology Synopsis: This patent seeks to bridge the gap between online and brick-and-mortar retail by using technologies like MAC-address tracking and eye tracking to monitor and analyze real-time consumer behavior and demographic data. This data is then used to trigger interactive outputs, such as personalized content on displays or prompts for sales assistance, to increase in-store conversion rates (Compl. ¶53-55, 57).
- Asserted Claims: Claim 1 (Compl. ¶176).
- Accused Features: The accused products are alleged to track consumer interactions, associate the information with demographic or behavioral data, and generate personalized marketing content based on the analysis (Compl. ¶174).
U.S. Patent No. 12,026,731 - Multi-Patent Capsule
- Patent Identification: 12,026,731, "Method For Personalized Marketing And Advertising Of Retail Products," issued July 2, 2024 (Compl. ¶59, 62).
- Technology Synopsis: This patent describes a method for delivering personalized marketing by analyzing a shopper's product interactions, tracking the shopper's location within the store, and providing targeted communications via an interactive device based on that determined location. The communications can include marketing information, coupons, or specific purchase options like delivery or pickup (Compl. ¶66-68).
- Asserted Claims: Claim 1 (Compl. ¶200).
- Accused Features: The accused products are alleged to analyze product interaction information, track consumer location, and generate real-time, targeted communications including promotions, coupons, and purchase options (Compl. ¶197-198).
U.S. Patent No. 12,354,121 - Multi-Patent Capsule
- Patent Identification: 12,354,121, "Method And System For Shopping In A Retail Store," issued July 8, 2025 (Compl. ¶70, 72).
- Technology Synopsis: This invention focuses on streamlining the checkout process by using monitoring devices to track a shopper's movement, maintain a list of items the shopper has retained for purchase, track the shopper to a point-of-sale area, and interface with a payment system to facilitate a seamless transaction for those items (Compl. ¶74-76).
- Asserted Claims: Claim 1 (Compl. ¶226).
- Accused Features: The accused products are alleged to gather shopper traffic and product interaction information, identify shopper stops, track the shopper to a point-of-sale area, and interface with a payment system (Compl. ¶221-224).
U.S. Patent No. 12,423,718 - Multi-Patent Capsule
- Patent Identification: 12,423,718, title not provided, published January 23, 2025 (Compl. ¶80-81).
- Technology Synopsis: This patent describes a method for improving checkout accuracy and customer assistance by generating and maintaining two lists: one of products a shopper retained while shopping and another of products being purchased at checkout. The system compares these lists in real time to detect discrepancies and can automatically notify a sales associate to provide targeted assistance (Compl. ¶83-85).
- Asserted Claims: Claim 1 (Compl. ¶251).
- Accused Features: The accused products are alleged to generate and maintain lists of retained and purchased products, compare them in real time, and use the comparisons to select and send communications to sales associates for customer engagement (Compl. ¶248-249).
III. The Accused Instrumentality
Product Identification
- The "Accused Products" are identified as Defendant Stratacache’s hardware and software platforms, including Walkbase Analytics, Walkbase Presence, Walkbase Flow, PRN digital-display networks, interactive displays, sensor-based audience-measurement modules, smart-shelf technologies, and in-store retail media network solutions (Compl. ¶91).
Functionality and Market Context
- The complaint alleges these platforms constitute a "shopper-intelligence" system that uses video analytics, sensors, and computer vision to generate real-time data on customer behavior inside physical retail locations (Compl. ¶88-89). Alleged functions include tracking customer movement, analyzing foot traffic and dwell time, detecting product interactions, and monitoring customer engagement (Compl. ¶91, 93). A marketing graphic for Stratacache's "Walkbase" platform depicts sensors tracking shoppers through a supermarket to provide "measurability for your physical space." (Compl. p. 30). Stratacache allegedly deploys these systems across retail, grocery, and other commercial environments to help clients increase sales and optimize merchandising (Compl. ¶90, 92). An image in the complaint shows an in-store digital display network launched by Albertsons in partnership with Stratacache (Compl. p. 30).
IV. Analysis of Infringement Allegations
11,049,120 Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| (a) using one or more information monitoring devices to gather information about shopping activities of a plurality of persons at a retail store... | The Accused Products embody a method for gathering information about shopping activities of consumers in a retail store setting (Compl. ¶101). | ¶101 | col. 4:66-4:67 |
| (v)(A) gathering traffic information of the persons within and about the retail store... | The implemented functions include gathering traffic information of shoppers, including their movement within the retail store (Compl. ¶103). | ¶103 | col. 10:10-14 |
| (v)(B) gathering product interaction information based upon type of interactions the persons had... | The functions include gathering product interaction information concerning the products with which the shopper interacts (Compl. ¶103). | ¶103 | col. 12:12-15 |
| (v)(C) gathering object identification information of the one or more products that the persons interacted with... | The functions include identifying the specific products with which the shopper interacts (Compl. ¶103). | ¶103 | col. 12:11-12 |
| (b) analyzing the information gathered by the information monitoring devices... to generate a layout analysis... | The Accused Products generate layout information about the retail store based on the gathered information (Compl. ¶104). | ¶104 | col. 2:25-28 |
| (c) utilizing the layout analysis to modify the first layout to generate a second layout of the products... | The Accused Products use the gathered information to make recommendations to improve the layout of products in the store (Compl. ¶104). | ¶104 | col. 2:25-28 |
- Identified Points of Contention:
- Scope Question: A potential point of contention for the ’120 Patent is whether the accused system's alleged function of making "recommendations to improve the layout" (Compl. ¶104) satisfies the claim requirement to "utiliz[e] the layout analysis to modify the first layout to generate a second layout." The analysis may raise the question of whether providing recommendations is equivalent to "generating" a new layout, or if the claim requires a more automated output like a complete, revised planogram.
11,301,880 Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| (a) using one or more information monitoring devices to gather information about shopping activities of a plurality of persons at a retail store... | The Accused Products use information monitoring devices, including video image devices, to gather information about shopping activities of persons at a retail store (Compl. ¶126-127). | ¶126-127 | col. 4:66-4:67 |
| (vi)(A) gathering product interaction information based upon product interactions... | The Accused Products perform functions such as gathering product interaction information regarding products with which a person interacts (Compl. ¶128). | ¶128 | col. 12:15-20 |
| (vi)(B) gathering object identification information of the one or more products that the persons interacted with... | The Accused Products perform functions such as gathering object identification information for the products that persons interacted with (Compl. ¶128). | ¶128 | col. 12:11-14 |
| (b) analyzing the information in real time... to manage inventory of the products... | The complaint does not provide sufficient detail for analysis of this element. It alleges the products embody a method for "customer assistance" (Compl. ¶125), but does not specify how the analysis is used to "manage inventory." | ¶125 | col. 2:20-29 |
| (c) providing a response in real time... selected from a group consisting of... sending a communication to a retail person to check inventory levels... re-stock... | The complaint does not provide sufficient detail for analysis of this element. The infringement allegations do not specify that the accused products provide the claimed inventory-related communications. | ¶125-128 | col. 17:25-18:8 |
- Identified Points of Contention:
- Technical Question: For the ’880 Patent, the complaint alleges infringement based on data gathering for "customer assistance" (Compl. ¶125, 128), but does not specify how the Accused Products perform the claimed functions of "analyzing the information... to manage inventory" or "providing a response... to immediately re-stock" products. This raises the question of what evidence the complaint provides that the accused system performs the specific inventory management and response functions required by the claim, as opposed to more general data gathering.
V. Key Claim Terms for Construction
Term from U.S. Patent No. 11,049,120: "generate a second layout"
- Context and Importance: This term defines the ultimate output of the claimed method. The infringement analysis may depend on whether the accused system's "recommendations to improve the layout" (Compl. ¶104) are construed as "generating a second layout."
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The patent's background section frames the problem as determining the "effectiveness of store layout" (’120 Patent, col. 2:25-28), which may support an argument that any output that informs or guides a layout modification falls within the claim's scope.
- Evidence for a Narrower Interpretation: The word "generate" could be interpreted to require the automated creation of a new, complete, and tangible layout plan (e.g., a schematic or planogram), rather than merely providing analytical data or suggestions that a human would then use to create a new layout.
Term from U.S. Patent No. 11,301,880: "manage inventory"
- Context and Importance: This term is critical as it defines the purpose of the "analyzing" step in Claim 1. Practitioners may focus on this term because the complaint's allegations for the ’880 Patent are less specific about inventory functions than about general data gathering (Compl. ¶125, 128).
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification mentions challenges related to "inventory forecasting, and proper product mix" (’880 Patent, col. 2:20-21), suggesting that "manage inventory" could encompass providing data that informs a wide range of inventory-related business decisions.
- Evidence for a Narrower Interpretation: The subsequent claim element, 1(c), lists specific, action-oriented "responses" (e.g., "sending a communication... to immediately re-stock"). This could support an argument that "manage inventory" is not merely informational but must be directly tied to executing or directing these concrete inventory actions.
VI. Other Allegations
- Indirect Infringement: The complaint alleges induced infringement for all asserted patents. The factual basis is that Stratacache allegedly provides the Accused Products to its customers and provides instructions or encouragement that directs them to use the systems in a manner that practices the patented methods (Compl. ¶117, 119, 140, 142).
- Willful Infringement: Willfulness is alleged for all asserted patents. The complaint bases this allegation on Defendant's alleged knowledge of the patents and infringement thereof "at least as early as the filing of this Complaint" and its continued infringing activity thereafter (Compl. ¶109, 133, 156). It further alleges Defendant "knew or was willfully blind" to the patented technology (Compl. ¶110, 134, 157).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of functional scope: do the accused retail analytics platforms, which are alleged to provide data-driven "insights" and "recommendations," perform the specific, outcome-oriented steps required by the claims? For instance, does providing data to inform a layout change meet the ’120 Patent's requirement to "generate a second layout," or does providing product interaction data satisfy the ’880 Patent's requirement to "manage inventory" by triggering specific restocking alerts?
- A central evidentiary question will be one of technical mapping: can Alpha Modus present evidence demonstrating that the functions of the Accused Products, as described in Stratacache’s marketing materials, correspond directly to the multi-step methods recited in the asserted claims? The case may turn on whether the general capability of "product-interaction detection" (Compl. ¶91) is proven to be used for the specific purpose of inventory management as claimed in the '880 Patent, a link not explicitly detailed in the complaint's infringement counts.