DCT
2:25-cv-01120
Alpha Modus Corp v. Atliq Tech Pvt Ltd
Key Events
Complaint
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Alpha Modus, Corp. (Florida)
- Defendant: AtliQ Technologies Pvt. Ltd. (India)
- Plaintiff’s Counsel: Prince Lobel Tye LLP
- Case Identification: 2:25-cv-01120, E.D. Tex., 11/12/2025
- Venue Allegations: Venue is alleged to be proper on the basis that the defendant is a foreign corporation and therefore may be sued in any judicial district.
- Core Dispute: Plaintiff alleges that Defendant’s retail artificial intelligence systems infringe four patents related to the real-time monitoring, analysis, and influencing of consumer behavior in brick-and-mortar retail environments.
- Technical Context: The technology at issue involves using in-store sensors, such as cameras, to gather data on shopper demographics, sentiment, and interactions with products, which is then used to deliver personalized advertising and manage inventory.
- Key Procedural History: The complaint notes that the asserted patents claim priority from a common 2013 provisional application. Plaintiff also states that it has entered into intellectual property licensing agreements outside of litigation, which may be presented as evidence of industry recognition of its patented technology.
Case Timeline
| Date | Event |
|---|---|
| 2013-07-19 | Priority Date for ’571, ’672, ’890, and ’550 Patents |
| 2019-07-23 | U.S. Patent No. 10,360,571 Issues |
| 2021-04-13 | U.S. Patent No. 10,977,672 Issues |
| 2021-06-22 | U.S. Patent No. 11,042,890 Issues |
| 2024-07-16 | U.S. Patent No. 12,039,550 Issues |
| 2025-11-12 | 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 brick-and-mortar retailers face from "showrooming," where shoppers examine products in-store but purchase them from online competitors, and the general lack of pre-sale consumer data available to physical retailers compared to their online counterparts (’571 Patent, col. 1:41-54).
- The Patented Solution: The invention proposes a method to monitor and analyze consumer behavior in real-time using information monitoring devices, such as cameras. The system gathers data including shopper demographics, sentiment (e.g., facial expressions), and movement tracking, analyzes this information, and provides a real-time response such as personalized marketing, promotions, or coupons to influence purchasing decisions (’571 Patent, Abstract; Compl. ¶23). The complaint's Figure 2, depicting facial analysis of a shopper, illustrates one form of data gathering described in the patent (Compl. p. 5).
- Technical Importance: This technology aims to provide physical retailers with data-driven tools, similar to those used by e-commerce platforms, to create more engaging and personalized in-store experiences and thereby increase sales conversions (Compl. ¶¶22-23).
Key Claims at a Glance
- The complaint asserts infringement of at least Claim 1 (Compl. ¶75).
- Independent Claim 1 is a method claim comprising the essential elements of:
- Using one or more information monitoring devices (including video image devices) to gather information about persons at a location.
- The gathered information includes a demographic characteristic, a sentiment characteristic, and a tracking characteristic.
- Providing an opt-out option to the persons.
- Analyzing the gathered information in real time, excluding information from persons who have opted out.
- Providing a response in real time based on the analysis, such as engaging the person via a display, sending a communication to a store employee, providing marketing information, or offering a coupon.
- The complaint does not explicitly reserve the right to assert dependent claims.
U.S. Patent No. 10,977,672 - "Method And System For Real-Time Inventory Management, Marketing, And Advertising In A Retail Store," Issued April 13, 2021
The Invention Explained
- Problem Addressed: The patent addresses the "significant gap" in the ability of brick-and-mortar retailers to provide the real-time, personalized experiences commonly offered by online retailers, which contributes to competitive pressures from "showrooming" (Compl. ¶¶32-33).
- The Patented Solution: The invention claims a system centered on a server that integrates inventory management with customer-facing marketing. The server uses image recognition to identify the inventory of products at a specific display location, displays product and pricing information, receives real-time data about a customer at that location, and generates a promotion for that customer based on behavioral analytics (’672 Patent, Claim 1). This creates a direct link between what is on the shelf, who is looking at it, and what promotion they receive.
- Technical Importance: The invention provides a method for dynamically managing both inventory and marketing at a granular, per-display level, aiming to increase in-store sales by making the shopping experience more relevant and responsive (Compl. ¶34).
Key Claims at a Glance
- The complaint asserts infringement of at least Claim 1 (Compl. ¶98).
- Independent Claim 1 is a system claim comprising the essential elements of:
- A server with processors and memory storing instructions that cause the server to perform several functions:
- Identify, via image recognition, an inventory of retail products at a display location.
- Display information about those products on a visual display.
- Determine and display current pricing information for the products.
- Receive real-time data about a customer from information monitoring devices.
- Generate a promotion for the customer based on behavioral analytics.
- The complaint does not explicitly reserve the right to assert dependent claims.
U.S. Patent No. 11,042,890 - "Method And System For Customer Assistance In A Retail Store," Issued June 22, 2021
- Technology Synopsis: This patent claims a method for enhancing customer assistance in a retail store by using 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 (Compl. ¶¶45-46). The system analyzes this information in real-time to manage inventory and provide a response, such as directing the person to a product location or sending a store employee to assist them (Compl. ¶46).
- Asserted Claims: At least Claim 1 (Compl. ¶122).
- Accused Features: The complaint alleges that the Accused Products perform functions such as gathering object identification and sentiment information, analyzing it in real time, and providing responses like directing customers or offering coupons (Compl. ¶¶120-121).
U.S. Patent No. 12,039,550 - "Method for Enhancing Customer Shopping Experience in a Retail Store," Issued July 16, 2024
- Technology Synopsis: This patent claims a method that involves obtaining a comprehensive "information analysis" about the shopping activities of multiple people, including traffic information, product interaction information, and object identification information (Compl. ¶57). This analysis is then provided to a "brand entity" to enhance the in-store experience through targeted engagement, marketing, or coupons based on the analysis and the brand's products (Compl. ¶57).
- Asserted Claims: At least Claim 1 (Compl. ¶145).
- Accused Features: The complaint alleges the Accused Products gather and analyze information from monitoring devices to track consumer interactions, identify products of interest, and generate personalized marketing based on the collected data (Compl. ¶¶143-144).
III. The Accused Instrumentality
Product Identification
The Accused Products are identified as Defendant AtliQ's "retail-AI systems," which include its "Smart Shelf Management, Targeted Advertising and Digital Signage, and Retail Analytics solutions" (Compl. ¶61).
Functionality and Market Context
The complaint alleges these products use "AI-powered cameras, sensors, and cloud-based analytics platforms" to perform several functions in retail stores (Compl. ¶61). Specifically, the "Smart Shelf Management" solution allegedly uses cameras to track inventory levels, while the "digital signage and in-store displays can be personalized based on customer demographics and past purchases" (Compl. ¶62). The complaint includes a marketing graphic from AtliQ's website titled "Applications of AI in Retail," which lists capabilities such as "Personalized Recommendations," "Smart Shelf Management," and "Targeted Advertising," allegedly demonstrating the use of computer-vision and behavioral analytics (Compl. p. 17). The complaint asserts that these systems provide AtliQ with competitive advantages in the retail market (Compl. ¶66).
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 (iii) the one or more information monitoring devices comprise one or more video image devices; | The Accused Products utilize "one or more information monitoring devices, including video image devices, to gather information about persons at a location." | ¶71 | col. 21:44-46 |
| (iv)...gathering a demographic characteristic... (v)...gathering a sentiment characteristic... (vi)...gathering a tracking characteristic... | The Accused Products "collect demographic characteristics, sentiment characteristics, and tracking characteristics of persons in proximity to the information monitoring devices in stores." | ¶73 | col. 21:47-64 |
| (b) providing an opt-out option to the persons in the group of persons... | "The Accused Products provide an opt-out option to the persons in proximity to the devices..." | ¶74 | col. 22:3-7 |
| (c) analyzing in real time...the information gathered by the information monitoring devices...except for the subset of opt-out persons... | The Accused Products "...analyze the information of those who have not opted out." The systems use servers and databases to analyze camera data in real time. | ¶¶72, 74, 63 | col. 22:8-17 |
| (d) providing a response in real time based upon the analyzed information... | AtliQ's systems provide "Targeted Advertising" and "Personalized Recommendations" by personalizing digital signage based on customer demographics. | ¶¶61, 62 | col. 22:18-21 |
Identified Points of Contention
- Scope Questions: Claim 1(b) requires "providing an opt-out option." A potential point of contention may be what constitutes an "opt-out option" in the context of a passive, camera-based monitoring system and what evidence the complaint provides that the accused system provides such an option before analysis occurs, as the claim structure suggests. The complaint makes a conclusory statement on this point (Compl. ¶74).
- Technical Questions: The claim requires gathering "demographic," "sentiment," and "tracking" characteristics. The case may turn on whether the specific types of data collected and analyzed by AtliQ's system (e.g., as described in its marketing materials) meet the definitions of these terms as understood in the context of the patent's specification and prosecution history.
’672 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| (a) a server comprising...instructions that...cause the server to: (A) identify, via image recognition, an inventory of one or more retail products physically located at the first visual display location... | AtliQ's Smart Shelf Management solution allegedly utilizes "AI-powered cameras" to "track inventory levels...when products are removed from shelves." | ¶62 | col. 9:26-30 |
| (B) display, on the first visual display, information about one or more of the one or more retail products... | AtliQ's "digital signage and in-store displays" show product information. The functions are alleged to include "displaying information about the products." | ¶¶62, 97 | col. 9:31-34 |
| (C) determine, in real-time, current pricing information... (D) display...the current pricing information... | The functions of the accused system are alleged to include "determining and displaying current pricing information." | ¶97 | col. 9:35-42 |
| (E) receive, using one or more information monitoring devices...real-time data of a customer... | The systems allegedly use "AI-powered cameras" and "sensors" to "monitor in-store activity" and personalize displays "based on customer demographics and past purchases." | ¶¶61, 62 | col. 9:43-46 |
| (F) generate a promotion of one or more...retail products...for the customer based on behavioral analytics. | AtliQ's systems allegedly provide "Targeted Advertising" and "personalize digital signage" based on "behavioral analytics to tailor real-time content and marketing." | ¶62 | col. 9:47-50 |
Identified Points of Contention
- Scope Questions: The claim requires the server to generate a promotion "based on behavioral analytics." The construction of this term will be critical. A question may arise as to whether using "customer demographics and past purchases," as alleged in the complaint (Compl. ¶62), is sufficient to meet the patent's definition of "behavioral analytics."
- Technical Questions: Claim 1(A) requires the server to "identify, via image recognition, an inventory." An evidentiary question will be whether AtliQ's "AI-powered cameras" that "track inventory levels" perform the specific technical function of "image recognition" to "identify" an inventory, or if they use a different method (e.g., weight sensors, RFID) that falls outside the claim scope.
V. Key Claim Terms for Construction
’571 Patent, Claim 1
- The Term: "sentiment characteristic"
- Context and Importance: This term defines a key category of data that is gathered and analyzed. Its construction is critical to determining the scope of infringement, as it will define whether the accused system must perform specific facial emotion detection or if other forms of sentiment analysis (e.g., text analysis of online reviews, tone of voice) could also infringe.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The claim language itself is not explicitly limited to facial expressions. The specification may describe sentiment more broadly as any indicator of a person's emotional state or opinion.
- Evidence for a Narrower Interpretation: Figure 2 of the patent shows a clear example of facial analysis with metrics for "Anger," "Happy," "Sad," and "Surprise," which may suggest that the invention is primarily concerned with visual emotion detection (’571 Patent, Fig. 2).
’672 Patent, Claim 1
- The Term: "behavioral analytics"
- Context and Importance: The generation of a promotion is expressly "based on behavioral analytics." The definition of this term is therefore central to the infringement analysis for this element. Practitioners may focus on this term because the complaint alleges AtliQ's personalization is based on "customer demographics and past purchases" (Compl. ¶62), and the dispute may center on whether this constitutes "behavioral analytics."
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification may define "behavioral analytics" broadly to encompass any analysis of a consumer's actions or attributes, which could include past purchase history and demographic data (’672 Patent, col. 17:1-14).
- Evidence for a Narrower Interpretation: The specification's discussion of tracking modules, including traffic counting, MAC address tracking, and eye tracking, may suggest that "behavioral analytics" requires analysis of real-time, in-store actions like movement, dwell time, or product interaction, rather than just static demographic data or historical purchases (’672 Patent, col. 9:10-14, col. 10:3-34).
VI. Other Allegations
- Indirect Infringement: The complaint includes counts for induced infringement for all four patents. It alleges that AtliQ knowingly "induces, aids, and directs others" (i.e., its customers) to use the Accused Products in an infringing manner, and that this intent is demonstrated through AtliQ's "promotions and instructions" for its systems (Compl. ¶¶85, 89, 108, 112, 132, 136, 155, 159).
- Willful Infringement: The complaint alleges willful infringement for all four patents. The basis for willfulness appears to be post-suit knowledge, as the complaint alleges AtliQ has been aware of the Asserted Patents "at least as early as the filing of this complaint" (Compl. ¶65). The willfulness allegations are based on "knowledge or willful blindness" and "blatant disregard for Alpha Modus's patent rights" (e.g., Compl. ¶¶80, 103, 127, 150).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of definitional scope: The case may turn on the construction of key claim terms such as "sentiment characteristic" and "behavioral analytics." The central question will be whether the functionality described in AtliQ's marketing materials—such as personalizing ads based on "demographics and past purchases"—can be mapped to these specific claim limitations as they are defined by the patents' specifications and figures.
- A key evidentiary question will be one of functional performance: For several claim elements, such as the '571 patent's requirement for an "opt-out option" and the '672 patent's requirement to use "image recognition" to identify inventory, the complaint makes allegations that are not substantiated with detailed evidence. A central dispute will likely involve whether the Accused Products actually perform these specific, claimed technical functions in the manner required by the patents.