DCT
1:25-cv-01466
Alpha Modus Corp v. MNTN Inc
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Alpha Modus, Corp. (Florida)
- Defendant: MNTN, Inc. (Texas)
- Plaintiff’s Counsel: Prince Lobel Tye LLP
- Case Identification: 1:25-cv-01466, W.D. Tex., 09/10/2025
- Venue Allegations: Venue is alleged to be proper as Defendant maintains a regular and established place of business in Austin, Texas, within the district, and has committed alleged acts of patent infringement in the district.
- Core Dispute: Plaintiff alleges that Defendant’s Connected TV (CTV) advertising platforms and services infringe three patents related to methods for monitoring and analyzing consumer behavior in real-time to provide personalized marketing.
- Technical Context: The technology at issue involves using monitoring devices to gather data on consumer demographics, sentiment, and product interactions to deliver targeted advertising and promotions, aiming to merge data-driven online marketing techniques with consumer shopping experiences.
- Key Procedural History: The complaint notes that the asserted patents are part of a continuing patent application chain. Plaintiff also states that it has previously entered into intellectual property licensing agreements outside of litigation, and that Defendant was aware of the patents-in-suit at least as of the complaint's filing date.
Case Timeline
| Date | Event |
|---|---|
| 2013-07-19 | ’571, ’890, and ’731 Patents Priority Date |
| 2019-07-23 | U.S. Patent No. 10,360,571 Issued |
| 2021-06-22 | U.S. Patent No. 11,042,890 Issued |
| 2024-07-02 | U.S. Patent No. 12,026,731 Issued |
| Second Quarter 2025 | Defendant’s financial results press release mentioned in complaint |
| 2025-09-10 | Complaint Filing Date |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 10,360,571 - “Method For Monitoring And Analyzing Behavior And Uses Thereof”
- Patent Identification: U.S. Patent No. 10,360,571, titled “Method For Monitoring And Analyzing Behavior And Uses Thereof,” issued July 23, 2019 (the “’571 Patent”). (Compl. ¶13, ¶16).
- 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, often due to a lack of personalized in-store experiences. (’571 Patent, col. 1:41-48, col. 2:14-23).
- The Patented Solution: The invention proposes a method to monitor consumers at a location using information monitoring devices, including video cameras, to gather real-time data such as demographic characteristics (age, gender), sentiment (emotion), and tracking information (movement). (’571 Patent, col. 3:23-34, Abstract). This data is then analyzed in real-time to provide personalized responses, such as targeted content on displays or digital coupons, with the goal of influencing purchasing decisions. (Compl. ¶21; ’571 Patent, col. 6:50-65). The complaint includes a figure from the patent showing a system architecture with various devices like cameras and displays within a physical “Retail Store” connected to a cloud server. (Compl. p. 4, FIG. 1).
- Technical Importance: The technology sought to provide physical retailers with the real-time, data-driven personalization capabilities previously associated primarily with e-commerce platforms. (Compl. ¶19).
- Key Claims at a Glance:
- The complaint asserts infringement of at least Claim 1. (Compl. ¶61).
- Essential elements of independent Claim 1 include:
- Using one or more information monitoring devices, which comprise video image devices, to gather information about persons at a location.
- Gathering specific information types: a demographic characteristic (e.g., gender, age), a sentiment characteristic, and a tracking characteristic (e.g., movement, eye movement).
- Providing an opt-out option to the persons being monitored.
- Analyzing the gathered information in real time for those who have not opted out.
- Providing a response in real time based on the analysis, selected from a group including engaging the person via a display, sending a communication to a second person (e.g., a store employee), providing marketing/advertising, or providing a coupon. (Compl. ¶22; ’571 Patent, col. 21:36–col. 22:42).
U.S. Patent No. 11,042,890 - “Method And System For Customer Assistance In A Retail Store”
- Patent Identification: U.S. Patent No. 11,042,890, titled “Method And System For Customer Assistance In A Retail Store,” issued June 22, 2021 (the “’890 Patent”). (Compl. ¶23, ¶26).
- The Invention Explained:
- Problem Addressed: The patent addresses the need for brick-and-mortar retailers to adapt to consumer behavior influenced by digital technology by providing more targeted in-store assistance. (Compl. ¶29; ’890 Patent, col. 2:1-14).
- The Patented Solution: The invention claims a method that uses monitoring devices to gather information about a person’s interaction with a specific product. (’890 Patent, Abstract). The method comprises gathering “object identification information of a product” the person is interested in, as well as the person’s “sentiment information with respect to the product.” (’890 Patent, col. 8:24-28). This combined information is analyzed in real-time to manage inventory and provide personalized responses, such as directing the customer to a location to interact with the product or sending marketing communications. (Compl. ¶31; ’890 Patent, col. 8:32-col. 9:9).
- Technical Importance: This technology focuses on creating a direct link between a specific product being considered and the customer's emotional response to it, enabling highly contextualized assistance and inventory analysis. (Compl. ¶30).
- Key Claims at a Glance:
- The complaint asserts infringement of at least Claim 1. (Compl. ¶85).
- Essential elements of independent Claim 1 include:
- Using one or more information monitoring devices to gather information about a person at a retail store.
- The gathering step comprises: (A) gathering object identification information of a product the person is interested in purchasing, and (B) gathering sentiment information of the person with respect to that product.
- Analyzing the gathered information in real time to manage inventory of products.
- Providing a response in real time based on the analysis, selected from a group including directing the person to a location, engaging the person via a display, sending a communication to a second person, or providing marketing/coupons. (Compl. ¶32; ’890 Patent, col. 21:40–col. 22:21).
U.S. Patent No. 12,026,731 - “Method For Personalized Marketing and Advertising of Retail Products”
- Patent Identification: U.S. Patent No. 12,026,731, titled “Method For Personalized Marketing and Advertising of Retail Products,” issued July 2, 2024 (the “’731 Patent”). (Compl. ¶33, ¶36).
- Technology Synopsis: This patent claims a method for personalized marketing that involves three main stages. First, it obtains an "information analysis" about a person's shopping activities, including their interactions with products. Second, it tracks the person's current physical location using a separate set of monitoring devices. Third, based on the determined location, it provides a targeted communication (such as an advertisement, coupon, or purchase option) to the person via an interactive device. (Compl. ¶38, ¶42; ’731 Patent, Abstract).
- Asserted Claims: The complaint asserts infringement of at least Claim 1. (Compl. ¶109).
- Accused Features: The complaint alleges that Defendant's Accused Products infringe by tracking consumer location, analyzing product interaction information from shopping activities, and using this analysis to generate and deliver real-time, targeted communications such as store-specific promotions, coupons, and purchase options. (Compl. ¶105, ¶107).
III. The Accused Instrumentality
- Product Identification: The accused instrumentalities are Defendant MNTN’s “Connected TV” (“CTV”) technology and associated products and services, including “MNTN Matched™, Verified Visits™, Next Gen TV and other CTV and Performance TV products and services” (the “Accused Products”). (Compl. ¶44, ¶56).
- Functionality and Market Context: The complaint alleges the Accused Products provide streaming advertising based on information gathered about a person's shopping activities, such as their activity on an online store. (Compl. ¶44). The technology is described as using Artificial Intelligence to create audience models from consumer demographic data to predict future behavior and deliver targeted advertisements to consumers on CTV platforms. (Compl. ¶47). The complaint references a press release from Defendant stating that its services make CTV advertising "measurable, precise, and performance-driven." (Compl. ¶46). The complaint includes a figure from the patents depicting the output of facial analysis software, which is used to gather demographic and sentiment data from a person's image. (Compl. p. 8, FIG. 2).
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... at a location | The Accused Products utilize monitoring devices to gather information about persons at locations such as at CTVs associated with consumers. | ¶57 | col. 9:15-21 |
| (iii) the one or more information monitoring devices comprise one or more video image devices | The complaint does not provide sufficient detail for analysis of this element. | col. 9:1-4 | |
| (iv) gathering a demographic characteristic... (v) gathering a sentiment characteristic... (vi) gathering a tracking characteristic | The Accused Products allegedly collect demographic, sentiment, and tracking characteristics of persons in proximity to the monitoring devices. | ¶59 | col. 10:5-16 |
| (b) providing an opt-out option to the persons | The Accused Products allegedly provide an opt-out option. | ¶60 | col. 11:40-45 |
| (c) analyzing in real time... the information gathered... of the persons... except for the subset of opt-out persons | The Accused Products allegedly analyze the information of those who have not opted out. | ¶60 | col. 5:25-30 |
| (d) providing a response in real time based upon the analyzed information | The complaint alleges MNTN's CTV platforms provide targeted TV advertising in response to consumer data. | ¶45 | col. 6:11-19 |
’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 | The Accused Products utilize monitoring devices to gather information about persons at locations such as at CTVs associated with consumers. | ¶81 | col. 9:20-25 |
| (iii)(A) gathering object identification information of a product that the person is interested in purchasing | The complaint does not provide sufficient detail for analysis of this element. | col. 12:11-14 | |
| (iii)(B) gathering sentiment information of the person with respect to the product | The Accused Products allegedly collect sentiment characteristics of persons. | ¶83 | col. 10:55-62 |
| (b) analyzing the information in real time... to manage inventory of the products | The Accused Products allegedly analyze the gathered information. The complaint does not specify how this analysis is used to manage inventory. | ¶82 | col. 8:32-38 |
| (c) providing a response in real time based upon the analyzed information | The complaint alleges MNTN's CTV platforms provide targeted advertising in response to consumer data. | ¶45 | col. 9:1-9 |
- Identified Points of Contention:
- Scope Questions: The patents’ specifications and figures heavily emphasize a physical “retail store” environment. (Compl. p. 7, FIG. 1; ’571 Patent, col. 4:6-7). A central issue may be whether the term "retail store" or "location," as used in the claims, can be construed to cover the online and in-home environment of Defendant’s "Connected TV" advertising platform.
- Technical Questions: A key factual question will be what specific "information monitoring devices" are used by the Accused Products and whether they meet the claim requirements, such as the use of "video image devices" to determine "sentiment" as described in the ’571 Patent. Furthermore, Claim 1 of the ’890 Patent requires "gathering object identification information of a product." The complaint's allegations for infringement of the ’890 Patent do not explicitly state that the Accused Products perform this function, instead repeating more general allegations of collecting demographic and sentiment data, which raises a question of whether infringement of this element has been adequately pleaded. (Compl. ¶83).
V. Key Claim Terms for Construction
- The Term: "location" / "retail store"
- Context and Importance: This term is critical because the patents are framed around solving problems in physical, brick-and-mortar retail, while the accused technology is an online advertising platform for CTV. The applicability of the patents to the accused technology may depend entirely on the construction of this term.
- Intrinsic Evidence for a Broader Interpretation: The independent claims of the ’571 Patent use the general term "location" without expressly limiting it to a physical store, which could support an argument that it covers any place where consumer behavior is monitored. (’571 Patent, col. 21:39).
- Evidence for a Narrower Interpretation: The specifications of all three patents consistently use the term "retail store" and provide examples and figures exclusively depicting a physical retail environment. (’571 Patent, Fig. 1; Abstract; col. 1:41-43). The problem statement in the background is specific to "brick-and-mortar retail." (’571 Patent, col. 1:47-49). This context may support a narrower construction limited to physical commercial establishments.
- The Term: "gathering a sentiment characteristic"
- Context and Importance: The patents link the gathering of "sentiment" to analysis of shoppers via "video image devices." (’571 Patent, cl. 1(a)(v); ’571 Patent, Fig. 2). It is unclear from the complaint how a CTV advertising platform "gathers a sentiment characteristic." Practitioners may focus on this term because the alleged infringement mechanism (online activity tracking) appears technically distinct from the patent's described mechanism (facial analysis via camera).
- Intrinsic Evidence for a Broader Interpretation: The claims themselves do not specify how sentiment must be gathered, only that it is gathered using "one or more video image devices." An argument could be made that any analysis derived from a video stream, even if not facial recognition, could qualify.
- Evidence for a Narrower Interpretation: The specification provides a specific example of sentiment analysis: identifying facial expressions like "Happy" or "Surprise" from a captured image. (’571 Patent, Fig. 2; col. 10:55-62). This explicit embodiment may be used to argue that the term requires a form of emotional analysis derived from a person's physical appearance, rather than inferring sentiment from online behavior like clicks or viewing duration.
VI. Other Allegations
- Indirect Infringement: The complaint asserts induced infringement for each patent-in-suit, alleging that Defendant knowingly encourages and directs its customers to use the Accused Products in a manner that infringes. (Compl. ¶71, ¶95, ¶119). The basis for specific intent is alleged to be Defendant’s "promotions and instructions" for its products. (Compl. ¶75, ¶99, ¶123).
- Willful Infringement: The complaint alleges willful infringement for all patents based on Defendant’s alleged knowledge of the patents "at least as early as the filing of this Complaint." (Compl. ¶51). It is alleged that Defendant continued its infringing activities despite this knowledge with "blatant disregard for Alpha Modus’s patent rights." (Compl. ¶66, ¶90, ¶114).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of environmental scope: can patent claims rooted in the context of solving the "showrooming" problem in physical "retail stores" through in-store monitoring be construed to cover an online "Connected TV" advertising platform that operates in a consumer's home and analyzes digital activity?
- A second key question will be one of technical correspondence: does the complaint provide sufficient factual allegations that the accused online advertising platform performs the specific technical functions required by the claims, such as "gathering object identification information of a product" (’890 Patent) or gathering "sentiment" via "video image devices" (’571 Patent), or is there a fundamental mismatch between the claimed methods and the accused system's operation?