DCT

1:25-cv-01527

Alpha Modus Corp v. MOOD Media LLC

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 1:25-cv-01527, W.D. Tex., 09/18/2025
  • Venue Allegations: Venue is alleged to be proper as Defendant Mood Media maintains a regular and established place of business within the Western District of Texas.
  • Core Dispute: Plaintiff alleges that Defendant’s in-store experiential media solutions infringe seven patents related to the real-time analysis of consumer behavior in retail environments.
  • Technical Context: The patents-in-suit relate to methods and systems for monitoring shopper demographics, sentiment, and movement within physical retail stores to deliver personalized marketing and enhance the in-store experience.
  • Key Procedural History: The complaint notes that the asserted patents claim priority to a common 2013 provisional application and form a cohesive technology portfolio. Plaintiff also states it has entered into licensing agreements for its patented technology outside of litigation.

Case Timeline

Date Event
2013-07-19 Earliest Priority Date for all Asserted Patents
2019-07-23 U.S. Patent No. 10,360,571 Issues
2020-12-01 U.S. Patent No. 10,853,825 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
2025-09-18 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"

  • Patent Identification: U.S. Patent No. 10,360,571, "Method For Monitoring And Analyzing Behavior And Uses Thereof," issued July 23, 2019 (Compl. ¶16, ¶19).

The Invention Explained

  • Problem Addressed: The patent describes the challenge brick-and-mortar retailers face from online competitors and the practice of "showrooming," where consumers inspect products in-store but purchase them online (Compl. ¶22; ’571 Patent, col. 1:41-47). This is attributed to the lack of real-time consumer data available to physical stores compared to online retailers (’571 Patent, col. 2:9-16).
  • The Patented Solution: The invention proposes a method using "information monitoring devices," such as video cameras, within a physical location to gather real-time data on shoppers, including demographic, sentiment, and tracking information (Compl. ¶21; ’571 Patent, Abstract). This collected data is then analyzed in real-time to provide personalized responses, such as targeted advertising on displays or digital coupons, thereby creating an enriched in-store experience designed to influence purchasing decisions (’571 Patent, col. 2:41-52).
  • Technical Importance: This approach sought to equip physical retailers with the data-driven personalization capabilities previously limited to online environments, with the stated goal of countering showrooming and increasing in-store sales (Compl. ¶22).

Key Claims at a Glance

  • The complaint asserts at least independent Claim 1 (Compl. ¶107).
  • The essential elements of Claim 1 include:
    • Using one or more information monitoring devices, including video image devices, to gather information about persons at a location.
    • Gathering a demographic characteristic (e.g., gender, age).
    • Gathering a sentiment characteristic.
    • Gathering a tracking characteristic (e.g., movement, eye movement).
    • Providing an opt-out option to the persons.
    • Analyzing the gathered information in real time for persons who have not opted-out.
    • Providing a response in real time based on the analysis, such as engaging the person via a display or providing a coupon. (Compl. ¶25).
  • The complaint alleges infringement of "at least Claim 1," reserving the right to assert other claims (Compl. ¶107).

U.S. Patent No. 10,853,825 - "Method for monitoring and analyzing behavior and uses thereof"

  • Patent Identification: U.S. Patent No. 10,853,825, "Method for monitoring and analyzing behavior and uses thereof," issued December 1, 2020 (Compl. ¶26, ¶29).

The Invention Explained

  • Problem Addressed: The patent identifies a "significant gap" in the ability of brick-and-mortar stores to provide the real-time, personalized customer experiences commonly leveraged by online retailers (Compl. ¶33).
  • The Patented Solution: The invention claims a method that uses monitoring devices to gather demographic and tracking data about a shopper in a retail store. This information is analyzed in real-time to "select a sales associate" and then send a communication to that associate containing the analysis. The communication is intended to enable the sales representative to "directly interact with the first person in response to the communication." (’825 Patent, Abstract; Compl. ¶36).
  • Technical Importance: This technology focuses on using real-time analytics to empower human sales associates, aiming to bridge the gap between digital data collection and personalized in-store customer service (Compl. ¶35).

Key Claims at a Glance

  • The complaint asserts at least independent Claim 1 (Compl. ¶131).
  • The essential elements of Claim 1 include:
    • Using information monitoring devices (including video devices) to gather demographic and tracking information about a person at a retail store.
    • 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 sales associates.
    • Sending a communication to the selected sales associate that comprises at least a portion of the gathered information or the analysis, enabling the sales representative to interact with the person. (Compl. ¶36).
  • The complaint reserves the right to assert claims beyond Claim 1 (Compl. ¶131).

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

  • Patent Identification: U.S. Patent No. 12,039,550, "Method for Enhancing Customer Shopping Experience in a Retail Store," issued July 16, 2024 (Compl. ¶37, ¶40).
  • Technology Synopsis: The patent describes a method for enhancing the in-store experience by obtaining an analysis of shopper activities based on gathered traffic, product interaction, and object identification information. This analysis is provided to a "brand entity" to facilitate customer engagement through displays, marketing, or coupons (Compl. ¶42, ¶47).
  • Asserted Claims: At least Claim 1 (Compl. ¶154).
  • Accused Features: The complaint alleges that Mood Media's products embody a system for monitoring and analyzing consumer behavior and product interaction information in a retail setting (Compl. ¶151).

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, "Method And System For Customer Assistance In A Retail Store," issued June 22, 2021 (Compl. ¶48, ¶51).
  • Technology Synopsis: The patent discloses a method for enhancing customer assistance by using monitoring devices to gather object identification and sentiment information regarding a product a person is interested in. The information is analyzed in real-time to manage inventory and provide a response, such as directing the person to the product's location or offering a coupon (Compl. ¶53, ¶56-57).
  • Asserted Claims: At least Claim 1 (Compl. ¶178).
  • Accused Features: The complaint alleges Mood Media’s products gather object identification and sentiment information, analyze it in real time, and provide responses such as directing a person or offering promotions (Compl. ¶176-177).

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

  • Patent Identification: U.S. Patent No. 11,301,880, "Method And System For Inventory Management In A Retail Store," issued April 12, 2022 (Compl. ¶58, ¶61).
  • Technology Synopsis: The patent introduces a method for real-time inventory management. It involves using monitoring devices to gather product interaction and object identification information, analyzing it to manage inventory, and providing a real-time response, such as sending a communication to a retail person to check inventory or re-stock a product (Compl. ¶63, ¶68).
  • Asserted Claims: At least Claim 1 (Compl. ¶204).
  • Accused Features: Mood Media’s products are accused of gathering product interaction and object identification information and sending communications to retail personnel regarding inventory (Compl. ¶202-203).

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

  • Patent Identification: 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 (Compl. ¶69, ¶71).
  • Technology Synopsis: This patent describes a system for optimizing a retail store layout. The method involves gathering traffic, product interaction, and object identification information to generate a layout analysis, which is then used to modify the store's first layout to generate a second, improved layout (Compl. ¶73, ¶78).
  • Asserted Claims: At least Claim 1 (Compl. ¶228).
  • Accused Features: The accused products are alleged to gather traffic and product interaction information and generate layout information to make recommendations for improving product layouts (Compl. ¶226-227).

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, "Method For Personalized Marketing And Advertising Of Retail Products," issued July 2, 2024 (Compl. ¶79, ¶82).
  • Technology Synopsis: The patent claims a method for personalized marketing by obtaining an analysis of a shopper's product interaction information, tracking the shopper's location, and providing a location-based communication. The communication can include marketing, coupons, or purchase options delivered via an interactive device (Compl. ¶84, ¶89).
  • Asserted Claims: At least Claim 1 (Compl. ¶252).
  • Accused Features: The accused products are alleged to analyze product interaction information, track consumer location, and generate real-time communications including promotions, coupons, and purchase options (Compl. ¶250-251).

III. The Accused Instrumentality

Product Identification

The accused products are identified as Mood Media's "IoT Sensors, Beacon Technology, Smart Digital Shelving, Machine Learning Algorithms, and Digital Signage products" (Compl. ¶93).

Functionality and Market Context

The complaint describes the accused products as part of an "international experiential media solutions" platform focused on transforming physical spaces (Compl. ¶90). A key accused feature is "Smart Digital Shelving," which includes a "Lift & Learn" application where in-store digital screens display promotional content when a product is lifted from a shelf (Compl. p. 25). The complaint includes a marketing screenshot that states, "Optical sensors can deliver customized content based on gender, age or mood" (Compl. p. 25). The system is alleged to operate in over 500,000 locations and reach over 165 million consumers daily (Compl. ¶90).

IV. Analysis of Infringement Allegations

U.S. Patent No. 10,360,571 Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
using one or more information monitoring devices... compris[ing] one or more video image devices The Accused Products utilize information monitoring devices, including video image devices such as optical sensors, to gather information about persons in retail stores. ¶103 col. 4:1-12
gathering a demographic characteristic of the persons... selected from a group consisting of gender... [and] approximate age The Accused Products' optical sensors are described as able to "deliver customized content based on gender, age or mood." ¶105; p. 25 col. 10:55-65
gathering a sentiment characteristic of the persons The Accused Products' optical sensors are described as able to deliver content based on "mood," which is alleged to be a sentiment characteristic. ¶105; p. 25 col. 10:14-16
gathering a tracking characteristic of the persons The Accused Products are alleged to collect tracking characteristics of persons in proximity to the monitoring devices in stores. ¶105 col. 10:1-12
providing an opt-out option to the persons The Accused Products are alleged to provide an opt-out option to persons in proximity to the devices. ¶106 col. 11:34-39
analyzing in real time... the information gathered The Accused Products include systems operably connected to a server and/or databases which analyze the gathered information. ¶104 col. 4:6-8
providing a response in real time based upon the analyzed information The "Lift & Learn" feature displays specific promotional content on digital screens when a product is lifted from a shelf, which constitutes a real-time response. p. 25 col. 4:8-12

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 in a group of persons at a retail store The Accused Products utilize sensors and data analytics tools to capture and process consumer interactions in retail environments. ¶127 col. 4:26-34
analyzing in real time... the information gathered... to generate a real time analysis The Accused Products execute computer-executable instructions to monitor consumer activity, track interactions, and analyze collected behavioral information. ¶128 col. 9:18-24
utilizing the real time analysis to select a sales associate from a group of sales associates The complaint does not provide sufficient detail for analysis of this element. col. 9:25-28
sending a communication to the sales associate The complaint does not provide sufficient detail for analysis of this element. col. 9:29-35

Identified Points of Contention

  • Scope Questions: The case may raise a question of definitional scope regarding whether the accused system's alleged "mood" detection functionality (Compl. p. 25) meets the "sentiment characteristic" limitation of the ’571 Patent, which the patent specification exemplifies with discrete emotions like "happy" and "angry" (’571 Patent, col. 13:58-64).
  • Evidentiary Questions: For the ’825 patent, a central point of contention may be the absence of specific factual allegations mapping the accused product to the claim elements requiring "utilizing the real time analysis to select a sales associate" and "sending a communication to the sales associate." The complaint makes general allegations about analyzing consumer behavior but does not specify how this analysis is used to select and communicate with a specific store employee as required by the claim (Compl. ¶127-130).

V. Key Claim Terms for Construction

The Term: "sentiment characteristic"

  • (from Claim 1 of the ’571 Patent)
  • Context and Importance: This term is critical because infringement of the ’571 patent hinges on whether Mood Media’s accused ability to deliver content based on "mood" constitutes gathering a "sentiment characteristic." Practitioners may focus on this term because the patent’s examples are specific emotions, while the accused functionality is described more vaguely as "mood."
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The patent specification refers more generally to capturing "sentiment or reaction" and tailoring messages based on "customer reaction," which could support a construction that is not limited to specific enumerated emotions (’571 Patent, col. 10:15-16, col. 10:30-32).
    • Evidence for a Narrower Interpretation: The detailed description provides a specific list of detectable sentiments: "% happy, % sad, % angry, % surprised" (’571 Patent, col. 13:62-64). This explicit list, and the use of facial analysis shown in a figure reproduced in the complaint (Compl. p. 5, FIG. 2), could be cited to argue for a narrower definition limited to these or similar discrete emotional states.

The Term: "utilizing the real time analysis to select a sales associate"

  • (from Claim 1 of the ’825 Patent)
  • Context and Importance: This term is the central inventive concept of the ’825 patent, distinguishing it from patents focused on automated responses. The complaint's infringement theory for this patent appears to lack specific facts on this element, making its construction pivotal to determining whether infringement can be shown.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The claim language itself does not specify the method or criteria for selection, only that it is based on the "real time analysis." This could support a broad interpretation covering any form of data-driven selection, including simple proximity.
    • Evidence for a Narrower Interpretation: The specification discusses alerting a "nearby employee" automatically when a customer has spent a set amount of time in a department, suggesting a location- and time-based selection logic (’825 Patent, col. 18:48-54). A defendant may argue this context limits the claim to a more specific, automated selection process rather than a generic notification system.

VI. Other Allegations

Indirect Infringement

The complaint includes counts for induced infringement for all seven asserted patents. It alleges that Mood Media knowingly induces its customers, who operate retail stores, to use the accused products in an infringing manner through its "promotions and instructions" (Compl. ¶117, ¶121, ¶141, ¶145, etc.).

Willful Infringement

Willfulness is alleged for all patents. The complaint bases this on knowledge acquired "at least as early as the filing of this Complaint" (Compl. ¶97), establishing a basis for potential post-filing willfulness. The allegations also include claims that Mood Media "knew or was willfully blind" to the patented technology prior to the suit, asserting an objectively high likelihood of infringement (Compl. ¶112, ¶136, etc.).

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

  • A central evidentiary question will be one of functional mapping: What evidence will be presented to demonstrate that the accused Mood Media systems perform the specific functions required by the claims? This is particularly acute for the ’825 patent, where the complaint offers minimal detail on how the accused system performs the key steps of "select[ing] a sales associate" and "sending a communication" to that person based on real-time analytics.
  • A core legal issue will be one of definitional scope: Can claim terms like "sentiment characteristic," which the '571 patent specification illustrates with specific emotions (e.g., happy, angry), be construed broadly enough to cover the accused product's more general "mood"-based content targeting? The outcome of such claim construction disputes will likely be determinative for several of the asserted patents.