DCT
2:25-cv-01145
Alpha Modus Corp v. V Count Global Holding Ltd
Key Events
Complaint
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Alpha Modus, Corp. (Florida)
- Defendant: V-Count Global Holding Ltd. (United Kingdom)
- Plaintiff’s Counsel: Prince Lobel Tye LLP
- Case Identification: 2:25-cv-01145, E.D. Tex., 11/21/2025
- Venue Allegations: Venue is alleged to be proper on the basis that the defendant is a foreign corporation and is therefore subject to suit in any judicial district.
- Core Dispute: Plaintiff alleges that Defendant’s people-counting and customer-analytics products and services infringe nine U.S. patents related to in-store retail analytics, behavior monitoring, and inventory management.
- Technical Context: The technology at issue involves using sensors, video imaging, and data analysis to provide brick-and-mortar retailers with e-commerce-style insights into real-time customer behavior and store operations.
- Key Procedural History: The complaint notes that Plaintiff maintains a public list of its patent portfolio on its company website and has previously entered into intellectual property licensing agreements outside of litigation.
Case Timeline
| Date | Event |
|---|---|
| 2013-07-19 | Earliest Priority Date for all Asserted Patents |
| 2020-12-01 | Issue Date: U.S. Patent No. 10,853,825 |
| 2021-04-13 | Issue Date: U.S. Patent No. 10,977,672 |
| 2021-06-22 | Issue Date: U.S. Patent No. 11,042,890 |
| 2021-06-29 | Issue Date: U.S. Patent No. 11,049,120 |
| 2022-04-12 | Issue Date: U.S. Patent No. 11,301,880 |
| 2024-07-02 | Issue Date: U.S. Patent No. 12,026,731 |
| 2024-07-16 | Issue Date: U.S. Patent No. 12,039,550 |
| 2025-01-23 | Issue Date: U.S. Patent No. 12,423,718 |
| 2025-07-08 | Issue Date: U.S. Patent No. 12,354,121 |
| 2025-11-21 | Complaint Filing Date |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 10,853,825 - "Method for monitoring and analyzing behavior and uses thereof" (Issued Dec. 1, 2020)
The Invention Explained
- Problem Addressed: The patent describes the challenge faced by brick-and-mortar retail stores in competing with online retailers, specifically the lack of real-time data on consumer behavior to create personalized shopping experiences and combat the practice of "showrooming" (Compl. ¶22; ’825 Patent, col. 1:43-51).
- The Patented Solution: The invention is a method that uses in-store information monitoring devices, such as video cameras, to gather demographic data (e.g., age, gender) and tracking data (e.g., movement) of a customer. This information is analyzed in real-time by a server to select a specific sales associate, who is then sent a communication to facilitate a direct, personalized interaction with the customer (Compl. ¶25-26; ’825 Patent, Abstract). The facial analysis aspect of this solution is depicted in a figure reproduced in the complaint (Compl. p. 8, FIG. 2).
- Technical Importance: The method aims to replicate the data-driven personalization of e-commerce within a physical retail setting, enabling staff to engage customers with more relevant information at critical decision-making moments (Compl. ¶23-24).
Key Claims at a Glance
- The complaint asserts at least Claim 1 (Compl. ¶126).
- The essential elements of independent Claim 1 include:
- Using one or more information monitoring devices (including video image devices) to gather information about a person at a retail store.
- Gathering a demographic characteristic of the person (e.g., gender, age) using the video devices.
- Gathering a tracking characteristic of the person (e.g., movement relative to devices, eye movement).
- Analyzing the gathered information in real time to generate a real-time analysis.
- Utilizing the real-time analysis to select a sales associate from a group of associates.
- Sending a communication to the selected sales associate, enabling the associate to interact with the person.
U.S. Patent No. 10,977,672 - "Method And System For Real-Time Inventory Management, Marketing, And Advertising In A Retail Store" (Issued Apr. 13, 2021)
The Invention Explained
- Problem Addressed: The patent identifies a gap in the ability of brick-and-mortar retailers to dynamically adjust marketing and inventory strategies in response to real-time consumer behavior, a capability commonly used by online retailers (Compl. ¶33-34).
- The Patented Solution: The invention is a system for real-time management at a specific visual display location in a store. A server uses image recognition to identify the inventory on display, determines current pricing, and displays this information. The system also receives real-time data about a customer at the display and uses "behavioral analytics" to generate a targeted promotion for that customer (Compl. ¶36-37; ’672 Patent, col. 8:36-9:5).
- Technical Importance: This technology allows for automated, hyper-local marketing and inventory management, enabling a single retail display to react dynamically to both its physical stock and the specific customer viewing it (Compl. ¶35).
Key Claims at a Glance
- The complaint asserts at least Claim 1 (Compl. ¶149).
- The essential elements of independent Claim 1 include:
- A system comprising a server with processors and memory.
- The server is caused to:
- Identify, via image recognition, an inventory of retail products at a first visual display location.
- Display information about the products on the first visual display.
- Determine and display, in real-time, current pricing information on the first visual display.
- Receive real-time data of a customer using monitoring devices at the display location.
- Generate a promotion for the customer based on behavioral analytics.
Multi-Patent Capsule Summaries
U.S. Patent No. 11,042,890: Titled "Method And System For Customer Assistance In A Retail Store," issued June 22, 2021.
- Technology Synopsis: The patent claims a method for providing customer assistance by using monitoring devices to gather product "object identification information" and customer "sentiment information." This data is analyzed in real-time to provide a response, such as directing a customer to a product location or sending a communication to a second person (e.g., a sales associate) for assistance (Compl. ¶46-47).
- Asserted Claims: At least Claim 1 (Compl. ¶173).
- Accused Features: The complaint alleges that Defendant's products gather object identification and sentiment information, analyze it in real-time, and provide responsive marketing or coupons (Compl. ¶171-172).
U.S. Patent No. 11,049,120: Titled "Method And System For Generating A Layout For Placement Of Products In A Retail Store," issued June 29, 2021.
- Technology Synopsis: This patent describes a method for optimizing a retail store's product layout. It involves using monitoring devices to gather customer traffic information (movement, stops, duration) and product interaction information. This data is analyzed to generate a "layout analysis," which is then used to modify the store's "first layout" to create a "second layout" (Compl. ¶56-57).
- Asserted Claims: At least Claim 1 (Compl. ¶197).
- Accused Features: The complaint alleges Defendant's products generate layout information and make recommendations to improve the layout of products in the store (Compl. ¶196).
U.S. Patent No. 11,301,880: Titled "Method And System For Inventory Management In A Retail Store," issued April 12, 2022.
- Technology Synopsis: This patent claims a method for managing inventory by gathering "product interaction information" (e.g., products picked up and carried away) and "object identification information." This data is analyzed in real-time to manage inventory at specific "product points" (e.g., shelves), and a response is provided, such as sending a communication to a retail person to check inventory or restock a product (Compl. ¶67-68).
- Asserted Claims: At least Claim 1 (Compl. ¶223).
- Accused Features: The complaint alleges Defendant's products gather product interaction information, analyze it, and provide responses related to product inventory (Compl. ¶221-222).
U.S. Patent No. 12,026,731: Titled "Method For Personalized Marketing And Advertising Of Retail Products," issued July 2, 2024.
- Technology Synopsis: The patent claims a method that obtains an "information analysis" based on a person's product interactions, tracks the person's location in the store, and provides a location-based communication to an interactive device. The communication includes a location to purchase a product and a targeted product communication, such as a coupon or purchase option (Compl. ¶78-79).
- Asserted Claims: At least Claim 1 (Compl. ¶247).
- Accused Features: The complaint alleges Defendant's products analyze product interaction data, track consumer location, and generate real-time communications such as coupons and purchase options (Compl. ¶245-246).
U.S. Patent No. 12,039,550: Titled "Method for Enhancing Customer Shopping Experience in a Retail Store," issued July 16, 2024.
- Technology Synopsis: This patent claims a method of obtaining a comprehensive "information analysis" about shoppers (traffic, product interaction, object ID) and providing it to a "brand entity." The brand entity then uses this analysis to enhance the in-store experience through targeted engagement, such as displaying content on screens, prompting sales assistance, or providing coupons (Compl. ¶89-90).
- Asserted Claims: At least Claim 1 (Compl. ¶270).
- Accused Features: The complaint alleges Defendant's products gather and analyze consumer interaction and demographic data to generate personalized marketing and promotional content (Compl. ¶269).
U.S. Patent No. 12,354,121: Titled "Method And System For Shopping In A Retail Store," issued July 8, 2025.
- Technology Synopsis: This patent claims a method for a seamless checkout experience. The system identifies a person, gathers their shopping information (traffic, product interaction), analyzes it in real-time to "generate and maintain a list" of products they have retained, tracks the person to a point-of-sale area, and interfaces with a payment system to process the transaction for the items on the list (Compl. ¶99-100).
- Asserted Claims: At least Claim 1 (Compl. ¶294).
- Accused Features: The complaint alleges Defendant's products enable "grab and go, self-check-out, and mobile scan and go purchases" by tracking retained products (Compl. ¶293).
U.S. Patent No. 12,423,718: (Title not provided in complaint), issued Jan. 23, 2025.
- Technology Synopsis: This patent claims a method that involves gathering information on products a person has "retained while shopping," tracking the person to a point-of-sale, and identifying the "being-purchased products." The method then requires comparing the list of retained products with the list of being-purchased products and, in response to the comparison, selecting and notifying a sales associate (Compl. ¶107-108).
- Asserted Claims: At least Claim 1 (Compl. ¶319).
- Accused Features: The complaint alleges Defendant's products generate and maintain lists of retained and purchased products, compare them in real-time, and use these comparisons to select sales associates (Compl. ¶317-318).
III. The Accused Instrumentality
Product Identification
The accused instrumentalities are V-Count's hardware and software products, collectively identified as the "Accused Products." This includes its proprietary Ultima Series sensors, demographic analysis modules, zone analytics, queue management systems, and its "Business Intelligence Platform" (Compl. ¶112).
Functionality and Market Context
The complaint alleges that the Accused Products provide real-time people-counting, customer analytics, and behavior-intelligence solutions for physical spaces like retail stores (Compl. ¶109). The system allegedly integrates computer vision and sensor-based technologies to deliver insights into visitor behavior through functionalities such as demographic analysis (age and gender estimation), visitor flow tracking, engagement measurement, and real-time behavioral monitoring (Compl. ¶110, 112). A screenshot from Defendant's website, included in the complaint, advertises "95% Gender Recognition" and "80% Age Recognition" using "AI on CHIP" technology (Compl. p. 31). The products are advertised for deployment across numerous industries, including retail, shopping malls, and supermarkets (Compl. ¶113).
IV. Analysis of Infringement Allegations
U.S. Patent No. 10,853,825 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 first person... wherein the one or more information monitoring devices comprise one or more video image devices | Defendant's Accused Products include proprietary hardware sensors and integrate computer vision and sensor-based measurement technologies to monitor consumer activity. | ¶110, 112, 122 | col. 5:1-5 |
| gathering a demographic characteristic of the first person using the one or more video image devices, wherein the demographic characteristic is selected from a group consisting of gender of the first person, approximate age of the first person... | Defendant’s products are described as enabling demographic analysis, including age and gender estimation, and highlight AI-driven demographic analytics and facial-attribute estimation. | ¶112, 114 | col. 5:6-10 |
| gathering a tracking characteristic of the first person, wherein the tracking characteristic...is selected from a group consisting of movement of the first person relative to the one more information monitoring devices, eye movement of the first person... | Defendant’s products are described as enabling visitor flow tracking, engagement measurement, and real-time behavioral monitoring. | ¶112, 124 | col. 6:3-10 |
| analyzing in real time using (A) the server... the information gathered... to generate a real time analysis of the first person... | Defendant's AI-powered analytics engine and cloud-based platform deliver accurate, real-time insights into visitor behavior, conversion, and traffic patterns. | ¶110, 122 | col. 6:11-19 |
| utilizing the real time analysis to select a sales associate from a group of sales associates at the retail store | The complaint alleges that the Accused Products satisfy this element, but provides limited specific factual detail on the selection of a sales associate. | ¶127, 25 | col. 6:20-22 |
| sending a communication to the sales associate... wherein the sales representative can then directly interact with the first person... | The complaint makes a conclusory allegation that this element is met, but does not specify how the Accused Products send communications to sales associates. | ¶127, 25 | col. 6:23-29 |
U.S. Patent No. 10,977,672 Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| A system for real-time inventory management... comprising: (a) a server comprising: (i) one or more server processors, and, (ii) a server memory... | The Accused Products utilize a server comprising one or more server processors and a server memory storing computer-executable instructions. | ¶147 | col. 8:36-42 |
| identify, via image recognition, an inventory of one or more retail products physically located at the first visual display location... | The Accused Products allegedly perform functions including identifying an inventory of retail products via image recognition. | ¶148 | col. 8:43-46 |
| display, on the first visual display, information about one or more of the one or more retail products... | The Accused Products allegedly perform the function of displaying information about the products. | ¶148 | col. 9:1-4 |
| determine, in real-time, current pricing information...and display, on the first visual display, the current pricing information... | The Accused Products allegedly determine and display current pricing information. | ¶148 | col. 9:5-11 |
| receive, using one or more information monitoring devices... real-time data of a customer | The Accused Products use sensors and data analytics tools that capture and process real-time consumer interactions and behavioral data. | ¶112, 122, 148 | col. 9:12-15 |
| generate a promotion of one or more...retail products...for the customer based on behavioral analytics. | The Accused Products use the collected behavioral information to generate insights and provide personalized content and marketing. | ¶124-125, 148 | col. 9:16-20 |
Identified Points of Contention
- Scope Questions: The infringement theory for the ’825 and ’718 Patents requires the accused system to select and communicate with a human "sales associate." The complaint's description of V-Count's products focuses on a "Business Intelligence Platform" for analytics (Compl. ¶112). A potential point of contention may be whether the accused platform, as sold, performs the specific function of dispatching store personnel, or if it merely provides data that a retailer could independently use for that purpose.
- Technical Questions: For the ’672 Patent, Claim 1 recites a system that performs multiple functions, including inventory identification and information display, at a "first visual display location." This raises the question of whether V-Count's combination of sensors and a back-end analytics platform constitutes the claimed integrated system, or if essential components (like an interactive product display) are supplied by third parties and are not part of the accused instrumentality.
V. Key Claim Terms for Construction
The Term: "sales associate" (’825 Patent, Claim 1)
- Context and Importance: This term appears in the final, action-oriented steps of Claim 1 of the ’825 Patent. Its definition is critical because infringement depends on whether the accused analytics platform interacts with a specific type of human employee as claimed. Practitioners may focus on this term because the complaint's description of the accused products emphasizes data analytics rather than human resource management.
- Intrinsic Evidence for a Broader Interpretation: The specification refers to sending a communication to "an employee of the retail store" (’825 Patent, col. 4:38-39), which may suggest the term is not limited to individuals with a specific job title.
- Intrinsic Evidence for a Narrower Interpretation: The claim requires the "sales representative" (used interchangeably) to "directly interact with the first person in response to the communication" (’825 Patent, col. 6:26-29). This language, combined with the common understanding of a "sales associate," may support a narrower construction requiring a person whose role involves customer interaction and sales, rather than any store employee (e.g., a stock room worker).
The Term: "behavioral analytics" (’672 Patent, Claim 1)
- Context and Importance: The generation of a promotion in Claim 1 of the ’672 Patent is explicitly "based on behavioral analytics." The scope of this term is central to determining whether the analysis performed by the accused products meets this limitation.
- Intrinsic Evidence for a Broader Interpretation: The patent's background section discusses understanding "consumer purchasing behavior" in broad terms, including overall traffic and product mix (’672 Patent, col. 1:16-24). This may support an interpretation where general traffic and demographic analysis constitutes "behavioral analytics."
- Intrinsic Evidence for a Narrower Interpretation: The patent's abstract and detailed description disclose specific, sophisticated analysis techniques such as "MAC address tracking, user eye tracking, [and] object identification of goods on shelves" (’672 Patent, Abstract). An argument could be made that "behavioral analytics," in the context of the patent, requires more than simple people-counting and instead necessitates analysis of specific interactions between a customer and a product.
VI. Other Allegations
- Indirect Infringement: The complaint alleges induced infringement for all asserted patents. The basis for these claims is that Defendant allegedly "knowingly induces, aids, and directs others to use the Accused Products in a manner that infringes" and that Defendant's customers practice the patented methods (e.g., Compl. ¶136, 159). The allegations of specific intent are based on Defendant's alleged promotions and instructions for its products (e.g., Compl. ¶140, 163).
- Willful Infringement: Willfulness is alleged for all asserted patents, based on Defendant having been "aware of the [asserted patents] and its infringement thereof" at least as early as the filing of the complaint (e.g., Compl. ¶116, 130, 153). This pleading appears to primarily establish a basis for potential post-suit willful infringement.
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of functional correspondence: Do the accused analytics products, which are described as providing "actionable intelligence" (Compl. ¶111), perform the specific, active steps recited in many of the claims? For example, does the platform itself "select a sales associate" (’825 Patent) and "modify the first layout" (’120 Patent), or does it merely provide data that enables a human user to perform these tasks, potentially creating a divided infringement issue?
- A key question will be one of system boundaries: Several patents claim an integrated "system" that combines sensing, analysis, and output at a specific location, such as a "visual display" (’672 Patent). The case may turn on whether the combination of Defendant's sensors and its cloud-based platform constitutes the complete claimed system, or if the infringement theory improperly combines Defendant's products with third-party components (like in-store display screens) not sold by the Defendant.
- The dispute will likely involve the definitional scope of technical analytics: The infringement analysis will require determining whether the "demographic analysis" and "visitor flow tracking" (Compl. ¶112) allegedly performed by the accused products are coextensive with claim terms like "behavioral analytics" (’672 Patent) and gathering "product interaction information" (’880 Patent), which may be construed to require more granular tracking of a customer's specific engagement with products.