Alpha Modus Corp v. 7 Eleven Inc

I. Executive Summary and Procedural Information

• Parties & Counsel:
  • Plaintiff: Alpha Modus, Corp. (Florida)
  • Defendant: 7-Eleven, Inc. (Texas)
  • Plaintiff’s Counsel: Prince Lobel Tye LLP
• Case Identification: 2:25-cv-01060, E.D. Tex., 01/16/2026
• Venue Allegations: Plaintiff alleges venue is proper in the Eastern District of Texas because Defendant is registered to do business in the state, has transacted business in the District, and operates multiple stores that constitute regular and established places of business within the District.
• Core Dispute: Plaintiff alleges that Defendant’s in-store analytics, customer engagement, and inventory management systems infringe eight patents related to the real-time monitoring and analysis of consumer behavior in retail environments.
• Technical Context: The technology at issue involves using in-store monitoring devices, such as video cameras, to collect and analyze data about shopper demographics, sentiment, and behavior to deliver personalized marketing and optimize retail operations.
• Key Procedural History: This filing is an Amended Complaint. The complaint notes that Plaintiff has entered into intellectual property licensing agreements outside of litigation and maintains a public list of its patent portfolio on its company website.

Case Timeline

Date	Event
2013-07-19	Earliest Priority Date for all Patents-in-Suit
2019-07-23	U.S. Patent No. 10,360,571 Issues
2021-06-22	U.S. Patent No. 11,042,890 Issues
2021-06-29	U.S. Patent No. 11,049,120 Issues
2022-04-12	U.S. Patent No. 11,301,880 Issues
2024-07-02	U.S. Patent No. 12,026,731 Issues
2024-07-16	U.S. Patent No. 12,039,550 Issues
2025-07-08	U.S. Patent No. 12,354,121 Issues
2025-09-23	U.S. Patent No. 12,423,718 Issues
2026-01-16	Amended Complaint Filed

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

U.S. Patent No. 10,360,571 - *"Method For Monitoring And Analyzing Behavior And Uses Thereof"*

Issued July 23, 2019

The Invention Explained

• Problem Addressed: The patent’s background section describes the challenge faced by brick-and-mortar retailers competing against online retailers, which can provide data-driven personalized shopping experiences. This competition is exacerbated by the trend of "showrooming," where consumers examine products in-store but purchase them online. (’571 Patent, col. 1:40-44; Compl. ¶25).
• The Patented Solution: The invention is a method for capturing and analyzing real-time data about shoppers in a physical location. It uses video cameras and other sensors to gather demographic, sentiment, and tracking information, which is then analyzed to provide personalized responses such as targeted advertisements or coupons directly to the consumer, aiming to influence their purchasing decision in the store. (’571 Patent, Abstract; col. 3:23-39). The system architecture involves in-store monitoring devices connected to servers and databases for analysis and response. (Compl. ¶26; ’571 Patent, Fig. 1).
• Technical Importance: This approach sought to provide physical retailers with the real-time analytical capabilities of online platforms, enabling them to personalize marketing and promotional material to a specific consumer at the point of decision. (’571 Patent, col. 2:32-38).

Key Claims at a Glance

• The complaint asserts independent Claim 1. (Compl. ¶192).
• The essential elements of Claim 1 include:
  • (a) using one or more information monitoring devices (including video) to gather information about persons at a location, the information comprising a demographic characteristic, a sentiment characteristic, and a tracking characteristic;
  • (b) providing an opt-out option to the persons;
  • (c) analyzing in real time the gathered information for persons who have not opted out; and
  • (d) providing a response in real time based on the analysis, selected from engaging the person via a display, sending a communication to a second person (e.g., a store employee), providing marketing information, or providing a coupon. (Compl. ¶30).
• The complaint reserves the right to assert other claims, including a number of dependent claims. (Compl. ¶192, ¶205).

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

Issued June 22, 2021

The Invention Explained

• Problem Addressed: The patent identifies the need for brick-and-mortar retailers to adapt to digitally-influenced consumer behavior by providing targeted, real-time assistance based on how customers interact with specific products in the store. (Compl. ¶46).
• The Patented Solution: The invention describes a method that uses monitoring devices to gather "object identification information" of a product a person is interested in, as well as "sentiment information" of the person regarding that product. This data is analyzed in real-time to manage inventory and provide a variety of responses, such as sending a communication to a store associate or delivering marketing information to the shopper. (’890 Patent, Abstract; Compl. ¶48).
• Technical Importance: The technology claims to provide advancements over prior methods by enabling real-time analysis of specific customer-product interactions, allowing retailers to manage inventory dynamically and offer personalized responses based on observed interest. (Compl. ¶47).

Key Claims at a Glance

• The complaint asserts independent Claim 1. (Compl. ¶225).
• The essential elements of Claim 1 include:
  • (a) using information monitoring devices to gather information about a person at a retail store, comprising gathering object identification information of a product of interest and gathering sentiment information of the person with respect to the product;
  • (b) analyzing the information in real time to manage inventory of products; and
  • (c) providing a response in real time based on the analysis, selected from sending a communication to direct the person, engaging the person via a display, sending a communication to a second person, providing marketing information, or providing a coupon. (Compl. ¶51).
• The complaint also asserts dependent claims. (Compl. ¶225, ¶238).

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

Technology Synopsis

The patent addresses the challenge of optimizing product layouts in brick-and-mortar stores. (Compl. ¶65). It claims a method that uses monitoring devices to gather shopper traffic information (movement, stops, duration) and product interaction information, analyzes this data to generate a "layout analysis," and then utilizes that analysis to modify the store's initial product layout to create a second, improved layout. (Compl. ¶64, ¶71).

Asserted Claims & Accused Features

• Asserted Claims: The complaint asserts at least Claim 1. (Compl. ¶258).
• Accused Features: The accused features include 7-Eleven's use of in-store cameras and analytics to monitor customer traffic flow and product interactions, analyze this data, and then use the analysis in its inventory management and merchandising software to modify product placements and planograms. (Compl. ¶259, ¶263-268).

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

Issued April 12, 2022

Technology Synopsis

The patent addresses challenges in real-time inventory management for brick-and-mortar retail. (Compl. ¶85-86). The claimed method involves using monitoring devices to gather product interaction information (e.g., products being picked up or carried away) and object identification information. This data is analyzed in real-time to manage inventory, triggering responses such as sending communications to retail personnel to check inventory, restock a product, or add a product to an inventory order. (Compl. ¶88, ¶92).

Asserted Claims & Accused Features

• Asserted Claims: The complaint asserts at least Claim 1. (Compl. ¶290).
• Accused Features: 7-Eleven's systems that use video analytics to detect when products are picked up and carried away, correlate this with product data, analyze it in real-time to identify potential out-of-stock conditions, and generate alerts to personnel to check or restock inventory. (Compl. ¶297, ¶299-302).

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

Issued July 2, 2024

Technology Synopsis

The patent addresses the need for retailers to deliver personalized marketing tied to a shopper's real-time location and shopping history. (Compl. ¶107-108). The method involves obtaining an analysis of a person's shopping activities (including product interactions), tracking the person's location, and then providing a location-based communication to their device that includes a retail store location and a product-related communication (e.g., marketing, coupons, purchase options). (Compl. ¶106, ¶113).

Asserted Claims & Accused Features

• Asserted Claims: The complaint asserts at least Claims 1-18. (Compl. ¶339). The complaint's direct infringement count for this patent, Count IX, incorrectly references the '’120 Patent. (Compl. ¶325). Assuming this is a typographical error, the allegations in paragraphs 326-338 map to the '’731 patent.
• Accused Features: 7-Eleven's systems that analyze in-store video of customer interactions, track customer location via their mobile devices, and then deliver targeted ads, coupons, and store locations to the 7-Eleven mobile app based on the analysis and location. (Compl. ¶327, ¶331, ¶333-335).

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

Issued July 16, 2024

Technology Synopsis

The patent aims to enhance the in-store experience by providing real-time analytics to retailers and enabling data sharing with brand partners. (Compl. ¶127-129). The method involves obtaining an information analysis (traffic, product interaction, object ID), providing that analysis to a "brand entity," and using it to enhance the shopping experience through brand-specific engagement, such as displaying targeted content or providing coupons related to that brand's products. (Compl. ¶134).

Asserted Claims & Accused Features

• Asserted Claims: The complaint asserts at least Claim 1. (Compl. ¶359).
• Accused Features: 7-Eleven's systems for analyzing customer behavior and product engagement, providing this analysis to its proprietary and/or affiliated brands, and using it to engage customers with brand-specific content and coupons through its mobile app and in-store communications. (Compl. ¶360, ¶366-367, ¶369).

U.S. Patent No. 12,354,121 - *"Method And System For Shopping In A Retail Store"*

Issued July 8, 2025

Technology Synopsis

The patent introduces a system for tracking products a customer retains while shopping to facilitate a seamless checkout process. (Compl. ¶147, ¶149). The claimed method uses monitoring devices to gather shopping information (traffic, product interaction), analyze it in real-time to generate and maintain a list of products retained by the shopper, track the shopper to a point-of-sale area, and interface with a payment system to allow for payment of the items on the retained list. (Compl. ¶151, ¶154).

Asserted Claims & Accused Features

• Asserted Claims: The complaint asserts at least Claims 1-6, 9-12, 16-19, and 21-25. (Compl. ¶389).
• Accused Features: 7-Eleven's "Scan, Pay, Go" checkout functionality and "cashierless" store concepts, where in-store systems are used to identify products retained by a customer, track the customer to a checkout or exit area, and facilitate payment and receipt transmission. (Compl. ¶389-391, ¶399-402).

U.S. Patent No. 12,423,718 - *"Methods and Systems for Providing Customer Assistance in a Retail Store"*

Issued September 23, 2025

Technology Synopsis

The patent addresses discrepancies between items a customer retains while shopping and the items they ultimately purchase at checkout, aiming to improve accuracy and reduce product loss. (Compl. ¶169-170). The method involves gathering information on products retained by a shopper, tracking them to a point-of-sale area, identifying the products being purchased, analyzing this information to compare the "retained" list with the "being-purchased" list, and, in response to a comparison, selecting and sending a communication to a sales associate. (Compl. ¶171, ¶174).

Asserted Claims & Accused Features

• Asserted Claims: The complaint asserts at least Claims 1-18. (Compl. ¶421). The complaint's induced infringement count for this patent, Count XIV, incorrectly references the '’718 patent infringing the '’121 patent. (Compl. ¶413).
• Accused Features: 7-Eleven's systems that create a list of products retained by a customer, compare that list to products presented at checkout, and are capable of sending communications to an associate to alert them of potential discrepancies. (Compl. ¶429-431).

III. The Accused Instrumentality

Product Identification

The complaint identifies the "Accused Products" as a collection of systems, technologies, and methods implemented within the 7-Eleven retail environment. (Compl. ¶185).

Functionality and Market Context

The Accused Products comprise a suite of technologies for in-store analytics and customer interaction. Key functionalities include: a network of in-store cameras, including 360-degree cameras, and associated analytics servers for processing video data (Compl. ¶185(a), (c)); a mobile app that provides offers, "Scan, Pay, Go" checkout functionality, and rewards (Compl. ¶185(b)); "cashierless" and reduced-staff store concepts (Compl. ¶185(e)); AI vision technologies for data analysis (Compl. ¶185(f)); and associated inventory management and marketing software systems (Compl. ¶185(h), (i)). The complaint alleges these technologies provide 7-Eleven with substantial competitive advantages in the retail market. (Compl. ¶188). The complaint includes a diagram from the '571 Patent depicting a system of interconnected in-store devices communicating with a central server or cloud, which serves as a general representation of the accused architecture. (Compl. p. 5, Fig. 1).

IV. Analysis of Infringement Allegations

'571 Patent 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 persons...wherein the...devices comprise one or more video image devices	7-Eleven employs a network of in-store cameras and a "digital video system" to gather video data and other information about shoppers.	¶192, ¶194	col. 7:47-49
(iv)...gathering a demographic characteristic of the persons...selected from a group consisting of gender...approximate age...	The monitoring devices, including cameras and mobile devices, are alleged to collect demographic characteristics of persons in proximity to the devices.	¶198	col. 7:50-58
(v)...gathering a sentiment characteristic of the persons...	7-Eleven is alleged to gather sentiment information by analyzing customer behavior captured by the monitoring devices, including proximity duration and movement patterns near product displays.	¶199	col. 8:1-4
(vi)...gathering a tracking characteristic of the persons...selected from a group consisting of movement of the persons...eye movement...	The accused systems allegedly use computer-vision to gather traffic information, including tracking customer movement relative to monitoring devices and identifying stops. The complaint provides an image from the patent illustrating the capture of demographic and sentiment data from a person's face.	¶200; p. 6, Fig. 2	col. 8:5-9
(b) providing an opt-out option to the persons in the group of persons...	The Accused Products are alleged to provide an opt-out option to customers.	¶201	col. 8:10-14
(c) analyzing in real time...the information gathered...	Video streams are transmitted from cameras to analytics servers for real-time processing and analysis of the gathered information for customers who have not opted out.	¶196, ¶201	col. 8:15-26
(d) providing a response in real time based upon the analyzed information...	The system allegedly provides real-time responses, including sending alerts to store associates, providing marketing information to customers via mobile devices or in-store displays, and delivering digital or printed coupons.	¶202-204	col. 8:27-29

• Identified Points of Contention:
  • Scope Questions: A central question may be the scope of "sentiment characteristic." The complaint alleges this is gathered by analyzing "proximity duration, and movement patterns" (Compl. ¶199), which is an inferential method. This raises the question of whether such behavioral proxies meet a claim limitation that the patent specification illustrates with explicit facial emotion analysis (e.g., "Happy: 0.785" in '571 Patent, Fig. 2), a technology described as "facial expression intelligence" ('571 Patent, col. 2:57-58).

'890 Patent 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 a person at a retail store...	7-Eleven uses in-store cameras and a digital video system to gather information about shoppers interacting with products.	¶227	col. 13:1-3
(iii)(A) gathering object identification information of a product that the person is interested in purchasing...	Computer-vision and image-recognition analytics are allegedly used to gather object identification information of products that a person shows interest in, such as by dwelling near them.	¶230	col. 13:10-13
(iii)(B) gathering sentiment information of the person with respect to the product;	7-Eleven allegedly gathers sentiment information by analyzing customer behavior such as dwell time, repeated viewing, proximity duration, and movement patterns, which are interpreted as indicators of interest or hesitation.	¶231	col. 13:13-15
(b) analyzing the information in real time...to manage inventory of the products...	7-Eleven allegedly analyzes the object identification and sentiment information in real time using its analytics servers and inventory management software to evaluate shopping activities and manage inventory.	¶232	col. 13:16-24
(c) providing a response in real time based upon the analyzed information...	Based on the analysis, 7-Eleven's systems allegedly provide real-time responses, including sending communications to customers' mobile applications, alerting store associates, providing marketing information on mobile devices or in-store displays, and providing coupons.	¶234-237	col. 13:25-29

• Identified Points of Contention:
  • Technical Questions: Similar to the '571 Patent, the interpretation of "sentiment information" will be a point of focus. The complaint suggests this is inferred from behavioral patterns like dwell time. (Compl. ¶231). The case may turn on whether this inference meets the claim requirement, or if a more direct measurement of emotion is required by the patent.
  • Scope Questions: The meaning of "analyzing...to manage inventory" may be disputed. The complaint alleges this is met by using analytics to "detect customer interest levels, identify products attracting attention, and identify potential out-of-stock or other issues." (Compl. ¶233). It raises the question of whether generating such insights constitutes "managing inventory," or if the claim requires a more direct action, such as automatically adjusting stock levels or triggering a replenishment order.

V. Key Claim Terms for Construction

• The Term: "sentiment characteristic" (’571 Patent) / "sentiment information" (’890 Patent)
• Context and Importance: This term is central to the infringement allegations for multiple patents. The complaint alleges infringement based on analyzing behavioral indicators like "proximity duration" and "movement patterns" to infer sentiment. (Compl. ¶199, ¶231). Practitioners may focus on whether this indirect inference of a customer's state of mind satisfies a claim term that the patent specification also illustrates with explicit facial emotion recognition technology.
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: The '571 patent specification discusses analyzing "behavioral characteristics" (col. 10:11-12) and using "machine learning algorithms along with things such as customer reaction, dwell time, location, and interaction with the display" to determine messaging (col. 10:29-32), which could support an interpretation that includes behavioral proxies for sentiment.
  • Evidence for a Narrower Interpretation: The '571 patent specification explicitly describes using algorithms to determine a person's "sentiment (such as based upon video images captured by cameras)" (col. 10:59-62). Figure 2 of the '571 patent, which is included in the complaint, shows a direct output of emotion analysis with scores for "Happy," "Anger," and "Surprise." (Compl. p. 6). This may support a narrower construction requiring direct emotional state detection.
• The Term: "analyzing...to manage inventory" (’890 Patent)
• Context and Importance: This limitation connects the claimed analysis step to a specific functional outcome. The infringement allegation rests on the idea that analyzing shopping activities to "identify potential out-of-stock or other issues" satisfies this element. (Compl. ¶233). The dispute may center on whether "managing inventory" requires an active control or adjustment step, versus merely generating data or alerts that inform a separate management process.
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: The '890 patent's background discusses improving the "effectiveness of their forecasting and inventory models" as a goal, which suggests that providing data to inform those models could be part of "managing inventory." ('890 Patent, col. 2:37-38).
  • Evidence for a Narrower Interpretation: Asserted Claim 1 of the related '’880 Patent, which focuses on inventory management, recites specific, active responses like "sending a communication to a retail person to check inventory levels" or "to immediately re-stock." (Compl. ¶92). A party could argue that the absence of such specific actions in the '890 claim does not broaden its scope, but rather that "manage inventory" itself implies a similarly active process described elsewhere in the patent family.

VI. Other Allegations

• Indirect Infringement: The complaint includes separate counts for induced infringement for each asserted patent. It alleges that 7-Eleven knowingly induces infringement by implementing the accused systems in its stores and encouraging, directing, and instructing its customers and staff to use them in a manner that practices the patented methods. (Compl. ¶216, ¶218, ¶249).
• Willful Infringement: Willfulness is alleged for all asserted patents. The basis for willfulness is alleged knowledge of the patents and infringement, at least as of the filing of the original complaint, and 7-Eleven's subsequent continued operation of the accused systems with "blatant disregard for Alpha Modus's patent rights." (Compl. ¶210-211, ¶243-244).

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

• A central issue will be one of definitional scope: can terms like "sentiment characteristic" and "sentiment information," which the patents illustrate with explicit facial analysis, be construed broadly enough to cover the alleged practice of inferring a shopper's emotional state from behavioral data like movement patterns and dwell time?
• A key evidentiary question will be one of functional causality: does the accused system's analysis of shopper behavior to generate insights, such as identifying popular products or potential stockouts, satisfy the claim requirement to "manage inventory," or must there be evidence of a more direct, automated inventory control action resulting from the analysis?
• A third question will relate to system architecture: the patents claim methods performed by interconnected systems of monitoring devices, servers, and databases. The case will require a detailed factual analysis of how 7-Eleven's various technology components (in-store cameras, mobile apps, analytics servers, inventory software) operate together to perform each step of the asserted method claims.