DCT
1:25-cv-01527
Alpha Modus Corp v. MOOD Media LLC
Key Events
Amended Complaint
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Alpha Modus, Corp. (Florida)
- Defendant: Mood Media, LLC (Delaware)
- Plaintiff’s Counsel: Prince Lobel Tye LLP
- Case Identification: 1:25-cv-01527, W.D. Tex., 12/29/2025
- Venue Allegations: Plaintiff alleges venue is proper because Defendant Mood Media maintains a regular and established place of business in the Western District of Texas.
- Core Dispute: Plaintiff alleges that Defendant’s in-store digital media solutions infringe seven patents related to the real-time monitoring and analysis of consumer behavior in retail environments to deliver personalized experiences.
- Technical Context: The technology at issue involves using video cameras, sensors, and network devices to analyze shopper demographics, sentiment, and movement to dynamically present targeted advertising, assist sales staff, and manage store operations.
- Key Procedural History: The complaint notes that Plaintiff publicly lists the Asserted Patents in its online patent portfolio and has previously entered into intellectual property licensing agreements outside of litigation. The Asserted Patents are part of a large, interrelated family sharing a common priority date, with several patents being continuations of earlier-filed applications in the family.
Case Timeline
| Date | Event |
|---|---|
| 2013-07-19 | Earliest Priority Date for all Asserted Patents |
| 2019-07-23 | U.S. Patent No. 10,360,571 Issued |
| 2020-12-01 | U.S. Patent No. 10,853,825 Issued |
| 2021-06-22 | U.S. Patent No. 11,042,890 Issued |
| 2021-06-29 | U.S. Patent No. 11,049,120 Issued |
| 2022-04-12 | U.S. Patent No. 11,301,880 Issued |
| 2024-07-02 | U.S. Patent No. 12,026,731 Issued |
| 2024-07-16 | U.S. Patent No. 12,039,550 Issued |
| 2025-12-29 | First 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 describes the challenge faced by brick-and-mortar retailers competing with online stores, specifically the lack of consumer data prior to a sale, which hinders their ability to personalize marketing and counter the trend of "showrooming" (’571 Patent, col. 1:41-48, col. 2:7-16).
- The Patented Solution: The invention is a method that uses information monitoring devices, such as video cameras, in a physical location to gather data on groups of people, including their demographics, emotional sentiment, and movement. This data is analyzed in real-time to trigger a response, such as displaying targeted content, sending a coupon, or alerting a staff member to assist, while also providing consumers with an option to opt-out of the data collection (’571 Patent, Abstract; col. 3:9-23; FIG. 1).
- Technical Importance: The technology claims to provide physical retailers with the capability to influence purchasing decisions through real-time, data-driven personalized shopping experiences, a tool previously more common in e-commerce (’571 Patent, col. 2:32-38).
Key Claims at a Glance
- The complaint asserts independent Claim 1 (Compl. ¶27).
- Essential elements of Claim 1 include:
- Using information monitoring devices (including video image devices) to gather information about a group of persons at a location, specifically their demographic, sentiment, and tracking characteristics.
- Providing an opt-out option to the persons in the group.
- Analyzing the gathered information in real-time, excluding any persons who have opted out.
- Providing a real-time response based on the analysis, selected from a group including engaging the person via a display, sending a communication to a second person (e.g., staff), providing marketing/advertising, or providing a coupon.
- The complaint does not explicitly reserve the right to assert dependent claims for this patent.
U.S. Patent No. 10,853,825 - "Method for monitoring and analyzing behavior and uses thereof," issued December 1, 2020
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 experiences common in online retail, which makes them vulnerable to online competition and showrooming (Compl. ¶44; ’825 Patent, col. 1:41-48).
- The Patented Solution: The invention is a method for gathering demographic and tracking data about a person in a retail store using monitoring devices. The system analyzes this data in real-time to select a sales associate and then sends a communication to that associate, enabling them to "directly interact with the first person in response to the communication" (’825 Patent, Abstract; Compl. ¶49).
- Technical Importance: This method aims to improve personalized shopping experiences by using real-time behavioral analytics to facilitate targeted and informed interactions between sales staff and customers in a physical retail setting (’825 Patent, col. 2:35-41).
Key Claims at a Glance
- The complaint asserts independent Claim 1 (Compl. ¶49).
- Essential elements of Claim 1 include:
- Using information monitoring devices (including video image devices) to gather demographic and tracking characteristics of a first person at a retail store.
- Analyzing this information in real-time to generate an analysis of the first person.
- Utilizing the real-time analysis to select a sales associate from a group of associates.
- Sending a communication to the selected sales associate containing at least a portion of the gathered information or the analysis, enabling the associate to then directly interact with the person.
- The complaint does not explicitly reserve the right to assert dependent claims for this patent.
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 addresses the need for brick-and-mortar retailers to enhance customer assistance by analyzing customer interactions with products (Compl. ¶64, ¶65). The claimed method involves gathering object identification information for a product a person is interested in, as well as the person's sentiment toward that product, analyzing the information, and providing a real-time response to the person or a staff member (Compl. ¶70).
- Asserted Claims: Claim 1 is asserted (Compl. ¶70).
- Accused Features: The complaint alleges that the Accused Products embody a method for customer assistance, including gathering object identification and sentiment information, analyzing it in real-time, and providing responses such as directing a person to a product location or providing marketing information (Compl. ¶¶223-226).
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: This patent introduces a system for optimizing the layout of products in a retail store by tracking and analyzing customer movement and interactions (Compl. ¶83, ¶84). The method claims gathering customer traffic information (movement, stops) and product interaction information (viewed, picked up), analyzing it to generate a "layout analysis," and then using that analysis to modify the store's product layout (Compl. ¶90).
- Asserted Claims: Claim 1 is asserted (Compl. ¶90).
- Accused Features: The complaint alleges the Accused Products gather traffic and product interaction information and generate layout information to make recommendations for improving the product layout in the store (Compl. ¶¶249-250).
U.S. Patent No. 11,301,880 - "Method And System For Inventory Management In A Retail Store," issued April 12, 2022
- Technology Synopsis: This patent introduces a method for real-time inventory management based on observed shopper activity to improve efficiency and reduce stockouts (Compl. ¶104, ¶107). The claimed method involves gathering product interaction information (products picked up or carried away) and object identification, analyzing this data to manage inventory, and providing a real-time response by sending a communication to retail staff to check inventory, re-stock products, or update an inventory order (Compl. ¶111).
- Asserted Claims: Claim 1 is asserted (Compl. ¶111).
- Accused Features: The complaint alleges the Accused Products gather product interaction and object identification information, analyze it in real-time, and provide a response by sending a communication to a retail person regarding inventory (Compl. ¶¶275-276).
U.S. Patent No. 12,026,731 - "Method For Personalized Marketing And Advertising Of Retail Products," issued July 2, 2024
- Technology Synopsis: This patent describes a method for personalized marketing by obtaining an analysis of a shopper's activities, tracking the shopper's location, and providing a targeted communication based on that location (Compl. ¶125). The communication, delivered to an interactive device, includes a retail store location for purchase and a product-specific communication such as marketing, a coupon, or a purchase option (Compl. ¶132).
- Asserted Claims: Claim 1 is asserted (Compl. ¶132).
- Accused Features: The complaint alleges the Accused Products analyze product interaction information, track consumer location, and generate real-time communications including store-specific promotions, coupons, and purchase options (Compl. ¶299).
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 introduces a system for enhancing the in-store shopping experience by providing behavioral analysis to a "brand entity" (Compl. ¶146). The method involves obtaining an analysis of shopping activities, providing it to a brand entity, and using it to enhance the customer experience through brand-specific engagement on a display, interaction with a second person, or targeted marketing/coupons (Compl. ¶153).
- Asserted Claims: Claim 1 is asserted (Compl. ¶153).
- Accused Features: The complaint alleges the Accused Products gather and analyze consumer interaction and demographic/behavioral data to generate personalized marketing or promotional content (Compl. ¶323).
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. ¶165).
- Functionality and Market Context: The complaint describes the Accused Products as providing in-store experiential media solutions (Compl. ¶162). A key accused feature is "Lift & Learn," where in-store digital screens display specific promotional content when an associated product is lifted from a shelf; the content changes if a different item is picked up (Compl. ¶166). A marketing screenshot for this feature is provided in the complaint (Compl. p. 47). Another accused feature, "Smart Digital Shelving," allegedly uses "Optical sensors" to "deliver customized content based on gender, age or mood" (Compl. p. 48). These products are allegedly used in the retail stores of Mood Media's customers (Compl. ¶175).
IV. Analysis of Infringement Allegations
The complaint references claim charts in an Exhibit H, which was not provided with the filed document (Compl. ¶168). The following analysis is based on the narrative allegations set forth in the counts of the complaint.
10,360,571 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 in a group of persons at a location...wherein...(iii) the...devices comprise one or more video image devices; | Accused Products utilize "one or more information monitoring devices, including video image devices, to gather information about persons at a location, specifically in Mood Media's customer's retail stores." | ¶175 | col. 4:56-65 |
| (iv)...gathering a demographic characteristic... (v)...gathering a sentiment characteristic... (vi)...gathering a tracking characteristic... | Accused Products "collect demographic characteristics, sentiment characteristics, and tracking characteristics of persons in proximity to the information monitoring devices in stores." | ¶177 | col. 7:50-59 |
| (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..." | ¶178 | col. 11:32-40 |
| (c) analyzing in real time...the information gathered...except for the subset of opt-out persons who have affirmatively opted-out... | Accused Products "analyze the information of those who have not opted out" via systems "operably connected to a server and/or one or more databases." | ¶176, ¶178 | col. 5:46-54 |
| (d) providing a response in real time based upon the analyzed information...selected from a group consisting of (i) engaging the person...using one or more displays... | The "Lift & Learn" and "Smart Digital Shelving" functionalities provide customized content on in-store digital screens based on customer interactions and characteristics like mood, age, or gender. A provided screenshot describes "in-store digital screens that display specific promotional content whenever the associated product is lifted from a shelf." | ¶166, ¶167 | col. 4:1-8 |
10,853,825 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 first person...at a retail store... | The Accused Products embody a method for monitoring and analyzing consumer behavior using "digital display systems, sensors, and data analytics tools that capture and process consumer interactions." | ¶199 | col. 4:56-61 |
| (iv)...gathering a demographic characteristic... and (v)...gathering a tracking characteristic... | Accused Products "collect information about consumer movement, product interaction, and related behavioral metrics" and use optical sensors to deliver content based on "gender, age or mood." | ¶201, ¶167 | col. 7:50-59 |
| (b) analyzing in real time...the information gathered...to generate a real time analysis of the first person... | Accused Products include systems operably connected to servers and databases which "execute computer-executable instructions to...analyze collected behavioral information." | ¶200 | col. 5:46-54 |
| (c) utilizing the real time analysis to select a sales associate from a group of sales associates at the retail store; and | The complaint does not specifically allege functionality for selecting a sales associate. It alleges the system uses information to provide personalized content and marketing to consumers. | ¶202 | col. 17:49-51 |
| (d) sending a communication to the sales associate...wherein the sales representative can then directly interact with the first person... | The complaint does not contain specific factual allegations that the Accused Products send a communication to a sales associate to enable interaction. The infringement allegation for this element appears to be conclusory. | ¶203 | col. 18:28-44 |
- Identified Points of Contention:
- Scope Questions: For the ’571 Patent, a question may arise as to whether the accused product's alleged analysis of individuals based on "gender, age or mood" (Compl. p. 48) meets the claim requirements of gathering "demographic," "sentiment," and "tracking" characteristics as three distinct data types.
- Technical Questions: For the ’825 Patent, a central technical question will be what evidence, if any, supports the allegation that the Accused Products perform the steps of "utilizing the real time analysis to select a sales associate" and "sending a communication to the sales associate." The complaint's factual descriptions of the accused "Lift & Learn" and "Smart Digital Shelving" focus on delivering content directly to the consumer via a screen, not on facilitating sales staff interactions as claimed in the ’825 Patent (Compl. ¶166, ¶167, ¶202).
V. Key Claim Terms for Construction
The Term: "sentiment characteristic" (’571 Patent, Claim 1(v))
- Context and Importance: This term is critical because infringement depends on whether the accused system, which allegedly delivers content based on "mood" (Compl. p. 48), gathers a "sentiment characteristic." The definition will determine if a general "mood" analysis satisfies this limitation or if more specific emotional states are required.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification does not explicitly define the term, which may support an argument for its plain and ordinary meaning, potentially encompassing general mood or level of interest.
- Evidence for a Narrower Interpretation: The patent specification repeatedly provides specific examples of sentiment, such as "happy, sad, angry, surprised" (’571 Patent, col. 10:56-57). A figure in the complaint, taken from the patent family, explicitly lists values for "Happy," "Sad," "Anger," and "Surprise," which could be used to argue the term is limited to these specific emotional categories (Compl. p. 5, FIG. 2).
The Term: "select a sales associate" (’825 Patent, Claim 1(c))
- Context and Importance: Practitioners may focus on this term because it appears to be a point of significant mismatch between the claim language and the alleged functionality of the Accused Products. The complaint's factual allegations describe automated content delivery to a shopper, whereas this claim element requires an affirmative step of choosing a particular staff member for an interaction (Compl. ¶166, ¶202).
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: A plaintiff may argue that any system logic that routes a customer's request for help to the "next available" or a geographically proximate staff member constitutes a "selection."
- Evidence for a Narrower Interpretation: The specification describes a system that provides a "profile of the customer to the sales associate" to help them "better serve the customer" (’825 Patent, col. 18:45-51). This context suggests an intelligent selection process, not merely a generic alert, which may support a narrower construction requiring more than simply routing a help request.
VI. Other Allegations
- Indirect Infringement: The complaint alleges that Mood Media induces infringement by encouraging, directing, and aiding its customers to use the Accused Products in retail stores in a manner that infringes the Asserted Patents. This inducement is allegedly supported by Mood Media's promotions and instructions (Compl. ¶¶189, 191, 193).
- Willful Infringement: Willfulness is alleged based on Mood Media's purported knowledge of the Asserted Patents, with knowledge dating from "at least as early as the filing of the initial Complaint" (Compl. ¶183). The complaint also makes a general allegation that Mood Media "knew or was willfully blind" to the patents prior to suit and points to the public listing of the patents on Plaintiff's corporate website as a potential source of pre-suit knowledge (Compl. ¶14, ¶184).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of evidentiary sufficiency: What evidence will be presented to show that the Accused Products perform every step of the asserted claims, particularly for patents like the ’825 Patent, where the complaint's factual descriptions of product functionality (automated content delivery to a consumer) appear misaligned with key claim limitations (selecting and sending a communication to a sales associate)?
- A second key issue will turn on definitional scope: How will the court construe terms like "sentiment characteristic"? Can a general "mood" detection by the accused system be proven to meet a claim limitation that, according to evidence in the patent itself, may be interpreted to require the detection of specific emotions like "happy" or "sad"?
- A final question will be one of functional distinction: Given the assertion of seven patents from the same family with a shared specification, a central challenge for the plaintiff will be to demonstrate a meaningful technical distinction in how the accused system infringes the unique elements of each patent's claims—from customer engagement (’571), to sales associate selection (’825), to inventory management (’880), to store layout generation (’120).