Alpha Modus Corp v. Lowe's Companies Inc

I. Executive Summary and Procedural Information

• Parties & Counsel:
  • Plaintiff: Alpha Modus, Corp. (Florida)
  • Defendant: Lowe's Companies, Inc. and Lowe's Home Centers, LLC. (North Carolina)
  • Plaintiff’s Counsel: Prince Lobel Tye LLP
• Case Identification: 2:25-cv-01026, E.D. Tex., 12/29/2025
• Venue Allegations: Plaintiff alleges venue is proper in the Eastern District of Texas because Defendant Lowe's operates multiple retail stores and a distribution center within the district, constituting regular and established places of business.
• Core Dispute: Plaintiff alleges that Defendant’s in-store analytics, customer engagement, and retail media systems infringe six patents related to the real-time analysis of consumer behavior for dynamic marketing, inventory management, and store layout optimization.
• Technical Context: The technology at issue involves using in-store sensors, such as video cameras, to monitor and analyze shopper behavior in real-time to personalize marketing and optimize store operations, a key area of competition between brick-and-mortar and online retail.
• Key Procedural History: The complaint is an Amended Complaint, and Plaintiff alleges Defendant has been aware of the asserted patents and the infringement allegations since at least the filing of the original complaint. Plaintiff also notes that it has entered into several intellectual property licensing agreements for its patented technology outside of litigation.

Case Timeline

Date	Event
2013-07-19	Earliest Priority Date for all Asserted Patents
2021-04-13	U.S. Patent No. 10,977,672 Issued
2021-06-22	U.S. Patent No. 11,042,890 Issued
2021-06-29	U.S. Patent No. 11,049,120 Issued
2022-04-12	U.S. Patent No. 11,301,880 Issued
2024-07-02	U.S. Patent No. 12,026,731 Issued
2024-07-16	U.S. Patent No. 12,039,550 Issued
2025-12-29	Amended Complaint Filed

II. Technology and Patent(s)-in-Suit Analysis

U.S. Patent No. 10,977,672 - *"Method And System For Real-Time Inventory Management, Marketing, And Advertising In A Retail Store"*

The Invention Explained

• Problem Addressed: The patent’s background section describes the challenge brick-and-mortar retailers face in competing with online retailers, who leverage real-time consumer data to personalize shopping experiences. Physical stores lack the tools to analyze pre-purchase customer behavior, leading to challenges like "showrooming," where customers examine products in-store but buy them online (’672 Patent, col. 1:36-54; Compl. ¶25-26).
• The Patented Solution: The invention is a system for a retail store that uses information monitoring devices (e.g., cameras) and a server to bridge this data gap. As described in the specification and depicted in Figure 1, the server uses image recognition to identify products on a display, receives real-time data about a customer at that display, determines current pricing, and generates a targeted promotion for the customer based on behavioral analytics, all of which can be presented on an in-store visual display (’672 Patent, Abstract; col. 3:25-52; Compl. p. 6).
• Technical Importance: This technological approach was designed to equip physical retail stores with the dynamic, data-driven marketing and inventory management capabilities that were a primary advantage of e-commerce platforms (Compl. ¶26-27).

Key Claims at a Glance

• The complaint asserts at least independent claim 1 (Compl. ¶164).
• Essential elements of Claim 1 (a system) include:
  • A server with processors and memory storing instructions to:
  • Identify, via image recognition, an inventory of retail products at a first visual display location.
  • Display information about those products on the first visual display.
  • Determine, in real-time, current pricing for those products.
  • Display the current pricing information on the first visual display.
  • Receive real-time data of a customer from information monitoring devices at the display location.
  • Generate a promotion for one or more of the products for the customer based on behavioral analytics (Compl. ¶31).

U.S. Patent No. 11,042,890 - *"Method And System For Customer Assistance In A Retail Store"*

The Invention Explained

• Problem Addressed: The patent addresses the need for brick-and-mortar retailers to provide more targeted, real-time customer assistance by better understanding and reacting to how shoppers interact with products in the store (Compl. ¶46).
• The Patented Solution: The invention is a method that uses information monitoring devices to gather two specific types of information: "object identification information" of a product a person is interested in, and "sentiment information" of the person regarding that product. This collected information is analyzed in real-time to manage inventory and provide an immediate response selected from a group of options, such as sending a communication to the person (e.g., directions to a product), engaging them on a display, or alerting a store employee to assist (’890 Patent, Abstract; col. 12:4-14; Compl. ¶51). The complaint includes Figure 2 from the patent, which shows an example of facial analysis used to determine a customer's sentiment (Compl. p. 11).
• Technical Importance: The technology aims to move beyond passive data collection to actively interpreting a customer's interest level or "sentiment" in order to trigger a specific, appropriate, and timely response to enhance the shopping experience (Compl. ¶47).

Key Claims at a Glance

• The complaint asserts at least independent claim 1 (Compl. ¶195).
• Essential elements of Claim 1 (a method) include:
  • Using information monitoring devices to gather information about a person in a retail store, comprising:
  • Gathering object identification information of a product the person is interested in purchasing.
  • Gathering sentiment information of the person with respect to the product.
  • Analyzing the gathered information in real time to manage inventory.
  • Providing a response in real time based on the analysis, selected from a group including sending a communication to the person, engaging the person on a display, alerting a second person (e.g., an employee), providing marketing/advertising, or providing a coupon (Compl. ¶51).

U.S. Patent No. 11,049,120 - *"Method And System For Generating A Layout For Placement Of Products In A Retail Store"*

• Technology Synopsis: This patent claims a method for optimizing the physical layout of a retail store. The method involves using video and other monitoring devices to gather information about customer traffic patterns and their interactions with products, analyzing this information to generate a "layout analysis," and then using that analysis to modify the store's initial product layout to create an improved second layout (Compl. ¶64, 68, 71).
• Asserted Claims: At least Claim 1 (Compl. ¶229).
• Accused Features: Lowe's computer-vision and spatial-analytics initiatives, including its "Dwell" heat-map analytics, and its store planning and planogram-reset systems (Compl. ¶229).

U.S. Patent No. 11,301,880 - *"Method And System For Inventory Management In A Retail Store"*

• Technology Synopsis: This patent discloses a method for real-time inventory management. The system uses video imaging devices to gather information on product interactions, specifically when products are "picked up" and "carried away" by shoppers. This data is analyzed in real-time to manage inventory, triggering responses such as sending a communication to retail personnel to check inventory levels, restock a product, or add a product to an inventory order (Compl. ¶85, 88, 92).
• Asserted Claims: At least Claim 1 (Compl. ¶262).
• Accused Features: Lowe's in-store camera network, computer-vision "Dwell" analytics, and its inventory, replenishment, and associate-notification systems (Compl. ¶262).

U.S. Patent No. 12,026,731 - *"Method For Personalized Marketing And Advertising Of Retail Products"*

• Technology Synopsis: The patent describes a method for personalized marketing by first obtaining an "information analysis" of a shopper's activities (e.g., product interactions), then tracking the shopper's location using a second set of devices, and finally providing a targeted communication to the shopper's interactive device (e.g., a mobile phone) based on their location and the prior analysis. The communication can include product location information, marketing, coupons, or purchase options (Compl. ¶106, 113).
• Asserted Claims: At least Claim 1 (Compl. ¶297).
• Accused Features: Lowe's "Dwell" computer-vision analytics, customer-facing mobile applications, and Lowe's Media Network ("LMN") retail-media infrastructure (Compl. ¶297).

U.S. Patent No. 12,039,550 - *"Method for Enhancing Customer Shopping Experience in a Retail Store"*

• Technology Synopsis: This patent claims a method where an analysis of shoppers' activities (traffic, product interaction) is obtained and provided to a "brand entity" (i.e., a product manufacturer). This analysis is then used to enhance the in-store experience through targeted engagement, such as displaying content selected based on the analysis and the brand's products, having an employee interact with the customer, or providing brand-specific marketing or coupons (Compl. ¶127, 134).
• Asserted Claims: At least Claim 1 (Compl. ¶330).
• Accused Features: Lowe's "Dwell" analytics, Store Digital Twin platform, Lowe's Media Network, and brand-partner analytics and reporting workflows (Compl. ¶330).

III. The Accused Instrumentality

Product Identification

The complaint identifies the Accused Products not as a single item but as an "integrated retail-technology ecosystem" (Compl. ¶155). This ecosystem includes Lowe's in-store camera network (using Axis Communications cameras and Genetec video management software), the "Dwell" computer-vision analytics initiative, the "Store Digital Twin" platform, the "Lowe's One Roof Media Network" for in-store advertising, and the "Mylow Companion" AI application for associates (Compl. ¶146).

Functionality and Market Context

The Accused Products are alleged to form a system that deploys in-store cameras to continuously capture video data of customer presence, movement, and interactions with products (Compl. ¶148). On-premises and cloud-based servers allegedly analyze this data using computer vision to generate behavioral metrics such as traffic flows, dwell time, and heat maps (Compl. ¶150). A "Store Digital Twin" platform digitally represents the physical store layout, allegedly allowing Lowe's to correlate customer behavior data with specific products and locations (Compl. ¶151). The outputs of this analysis are allegedly used to trigger downstream functions, including inventory replenishment decisions, store layout modifications, alerts to store associates, and the delivery of targeted marketing through in-store digital displays and mobile applications (Compl. ¶152-154). The complaint frames these technologies as central to Lowe's "Total Home Strategy" to improve operational efficiency and create a "seamless omnichannel experience" (Compl. ¶145).

IV. Analysis of Infringement Allegations

’672 Patent Infringement Allegations

Claim Element (from Independent Claim 1)	Alleged Infringing Functionality	Complaint Citation	Patent Citation
identify, via image recognition, an inventory of one or more retail products physically located at the first visual display location in the retail store	Lowe's systems use their camera network to analyze images of product displays, correlating them with product data from merchandising and inventory systems to identify products on shelves and fixtures.	¶167	col. 12:5-10
display, on the first visual display, information about one or more of the one or more retail products physically located at the first visual display location	Lowe's in-store digital visual displays, located near product displays, show information such as product descriptions, features, and availability.	¶168	col. 13:1-7
determine, in real-time, current pricing information regarding the one or more retail products physically located at the first visual display location	The accused systems access Lowe's pricing, inventory, and merchandising databases in real time to retrieve current store-specific and promotional pricing.	¶169	col. 14:1-5
display, on the first visual display, the current pricing information...	Lowe's displays the determined pricing information on in-store digital displays, such as shelf-adjacent signage and end-cap displays.	¶170	col. 13:1-7
receive, using one or more information monitoring devices at the first visual display location, real-time data of a customer	Lowe's in-store Axis camera network and computer-vision analytics are used to detect customer presence, proximity to displays, movement paths, and dwell time.	¶171	col. 9:18-24
generate a promotion of one or more...retail products...for the customer based on behavioral analytics	Based on analytics of customer proximity and dwell behavior near displays, Lowe's systems generate targeted marketing and advertising content for presentation on in-store displays.	¶173, ¶174	col. 14:60-67

’890 Patent Infringement Allegations

Claim Element (from Independent Claim 1)	Alleged Infringing Functionality	Complaint Citation	Patent Citation
using one or more information monitoring devices to gather information about a person at a retail store	Lowe's employs its in-store information monitoring devices, including its camera network, to gather audio and video data about persons shopping in its stores.	¶197	col. 3:31-35
gathering object identification information of a product that the person is interested in purchasing	Lowe's systems use computer-vision and image-recognition analytics on video from in-store cameras to identify specific products, shelves, and fixtures that a person interacts with or dwells near.	¶200	col. 12:15-24
gathering sentiment information of the person with respect to the product	Lowe's systems analyze customer behavior, including dwell time, repeated viewing, and movement patterns near displays, and interpret these behaviors as indicators of interest, engagement, or hesitation.	¶201	col. 9:61-67
analyzing the information in real time...to manage inventory of the products	Lowe's uses its analytics servers and Store Digital Twin platform to analyze the object identification and sentiment information in real time to evaluate shopping activities and manage inventory, including identifying potential out-of-stock conditions.	¶202, ¶203	col. 5:1-4
providing a response in real time based upon the analyzed information	Based on the analysis, Lowe's systems provide real-time responses, including sending product-locator guidance to mobile apps, presenting content on digital displays, alerting associates via heat maps and notifications, and providing digital or printed coupons.	¶204-208	col. 13:45-52

Identified Points of Contention

• Scope Questions: A central question for the ’890 Patent may be the construction of "sentiment information." The complaint alleges that Lowe's infers sentiment from behavioral proxies like "dwell time," "repeated viewing," and "movement patterns" to indicate "interest, engagement, or hesitation" (Compl. ¶201). However, the patent specification discusses determining sentiment based on video images and provides an explicit example in Figure 2 of analyzing facial expressions for emotions like "Happy" and "Anger" (’890 Patent, col. 9:61-67; Compl. p.11). This raises the question of whether "sentiment information" requires analysis of a person's emotional state, or if it can be construed more broadly to encompass behavioral indicators of interest.
• Technical Questions: For the ’672 Patent system claim, a potential issue is whether Lowe's combination of distinct platforms from different vendors (e.g., Axis, Genetec) and its own proprietary systems (e.g., Dwell, Store Digital Twin) functions as the single, integrated "system" recited in the claim. The analysis may focus on the degree and nature of the operational connection between these different components.

V. Key Claim Terms for Construction

"sentiment information" (’890 Patent, Claim 1)

• Context and Importance: This term is critical to the infringement analysis of the ’890 Patent. Whether Lowe's alleged practice of analyzing behavioral data like "dwell time" and "movement patterns" (Compl. ¶201) meets this limitation will be a core dispute. Practitioners may focus on this term because the complaint's infringement theory appears to rely on a broader definition than what may be supported by the patent's specific examples.
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: The patent's abstract describes a general system for "monitoring and analyzing consumer purchasing behavior" (’890 Patent, Abstract). This context could support an argument that "sentiment" is used as a term of art within this field to mean a customer's disposition or level of interest, which can be inferred from actions, not just emotions.
  • Evidence for a Narrower Interpretation: The specification explicitly describes a "demographic intelligence module" that "utilizes algorithms...to determine a person's gender, approximate age, and sentiment (such as based upon video images captured by cameras...)" (’890 Patent, col. 9:61-67). Furthermore, Figure 2, which is duplicated in the complaint, provides a specific, graphical example of sentiment analysis that identifies emotions such as "Happy," "Sad," and "Anger," strongly suggesting the inventors contemplated a definition tied to emotional state (Compl. p. 11).

"behavioral analytics" (’672 Patent, Claim 1)

• Context and Importance: The definition of this term will determine whether the logic used by Lowe's systems to generate promotions qualifies under the claim. The dispute may turn on how sophisticated the "analytics" must be.
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: The specification broadly discusses analyzing "behavior of persons at a location" and mentions various modules like "traffic modules" and "engagement modules" (’672 Patent, col. 3:25-47). This may support a construction that covers any analysis of a customer's actions, including simple metrics like presence or proximity.
  • Evidence for a Narrower Interpretation: The patent also describes more complex forms of analysis, such as using MAC address tracking to determine "the path that customer took throughout the store, where they stood and for how long" (’672 Patent, col. 11:1-15). A defendant could argue that "behavioral analytics" requires more than simple presence detection and implies a more detailed analysis of a customer's journey or specific interactions, consistent with these more detailed embodiments.

VI. Other Allegations

Indirect Infringement

The complaint includes counts for induced infringement for all six asserted patents. The allegations state that Lowe's knowingly induces infringement by implementing the Accused Products in its stores and encouraging and directing its employees and customers to use them in an infringing manner (e.g., Compl. ¶186, ¶220, ¶253, ¶288, ¶322, ¶354).

Willful Infringement

Willfulness is alleged for all six patents. The complaint bases this on Lowe's alleged knowledge of the patents and its infringement since at least the filing of the original complaint, and its continued operation of the Accused Products despite this knowledge (e.g., Compl. ¶180-183, ¶214-217, ¶247-250, ¶282-285, ¶316-319, ¶348-351).

VII. Analyst’s Conclusion: Key Questions for the Case

• A core issue will be one of definitional scope: can the term "sentiment information," which is exemplified in the patent specification with direct emotional analysis via facial recognition (e.g., "Happy," "Anger"), be construed broadly enough to cover the behavioral proxies for "interest, engagement, or hesitation" (e.g., "dwell time," "repeated viewing") that the complaint alleges Lowe's systems analyze?
• A key evidentiary question will be one of systemic integration: do the various accused components—including third-party camera systems, proprietary analytics engines, and digital media platforms—operate together as the integrated "system" required by claims like Claim 1 of the ’672 Patent, or will the evidence show a collection of discrete systems whose interactions fall short of performing every limitation of the claim?
• A central legal and factual question will concern method performance: for the asserted method claims, does Lowe's, by itself, perform every claimed step, or are certain steps (e.g., receiving communications on a mobile device) performed by customers in a manner that might defeat a claim of direct infringement by Lowe's alone?