Alpha Modus Ventures Files Federal Lawsuit Against Rackspace for Infringement of Foundational Fibre Channel over Ethernet Patents
Rhea-AI Summary
Alpha Modus Ventures (NASDAQ: AMOD) has filed its seventh federal lawsuit against Rackspace US, Inc. for alleged willful infringement of three foundational patents related to Fibre Channel over Ethernet (FCoE) technology. The lawsuit, filed in the Western District of Texas, claims Rackspace unlawfully used AMV's patented technologies in its DCX® 8510 Backbone and Gen 5 Fibre Channel products.
The legal action is part of AMOD's strategic IP monetization program, which has already secured four partnerships. The company seeks enhanced damages under U.S. patent law, citing Rackspace's unauthorized use of their data transport innovations in cloud and enterprise infrastructure solutions.
Positive
- Already secured four high-impact partnerships through IP monetization program
- Strategic enforcement of valuable patents in growing technology sectors
- Potential for enhanced damages due to claimed willful infringement
- Part of broader commercial strategy including AI retail media and fintech initiatives
Negative
- Legal proceedings could be lengthy and costly
- Patents involved in the lawsuit are expired
- Uncertain outcome of patent litigation
- Resources required for ongoing legal enforcement actions
News Market Reaction
On the day this news was published, AMOD declined 2.42%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Seventh IP Enforcement Action Underscores Alpha Modus’ Mission to Unlock Shareholder Value Through Strategic Patent Monetization
CORNELIUS, N.C., June 24, 2025 (GLOBE NEWSWIRE) -- Alpha Modus Ventures, LLC (“AMV”), a related party of Alpha Modus Holdings, Inc. (NASDAQ: AMOD, and the “Company”) which entered into a patent monetization agreement with the Company in April, today announced that it has filed a federal lawsuit in the United States District Court for the Western District of Texas against Rackspace US, Inc. for willful infringement of three foundational U.S. patents: 11,108,591, 11,310,077, and 11,303,473. These patents center on AMV's pioneering innovations in Fibre Channel over Ethernet (FCoE) transformation technology—advancements that enable seamless and cost-efficient convergence of storage and data networks in cloud and enterprise infrastructure.
The lawsuit asserts that Rackspace unlawfully incorporated AMV’s patented technologies into its products and services, including at the DCX® 8510 Backbone and Gen 5 Fibre Channel offerings, which utilize Brocade FCOE10-24 Blades and Data Center Bridging to deliver enterprise networking services.
“This marks the seventh strategic enforcement action by us or AMV and builds upon the success of our IP monetization program, which has already resulted in four high-impact partnerships that now anchor our growing digital ecosystem,” said William Alessi, CEO of Alpha Modus Holdings, Inc. “We are focused on building long-term shareholder value by protecting innovation and converting IP into scalable, revenue-generating opportunities.”
This legal action reflects the Company’s broader strategy to unlock the full commercial potential of its deep patent portfolio—through a combination of licensing, litigation, and go-to-market collaborations across AI, retail, fintech, and enterprise networking.
“Intellectual property is one of the most powerful and valued assets in today’s tech economy,” Alessi continued. “Whether it’s powering in-store AI, cloud interoperability, or fintech terminals, we are committed to defending and activating our IP to drive shareholder returns and secure our leadership in next-gen infrastructure.”
Key claims in the Rackspace lawsuit include:
- Direct and induced infringement of AMV’s expired but enforceable patents
- Willful commercial use of patented FCoE technologies without license
- Enhanced damages sought under U.S. patent law for egregious infringement
AMV believes Rackspace utilized patented data transport innovations without authorization, profiting from technologies AMV has spent years developing and protecting.
This enforcement action complements the Company’s broader commercial momentum—including recent AI retail media partnerships, CashX fintech terminal rollouts, and strategic licensing agreements—all enabled by the Company's proprietary technology foundation.
To explore Alpha Modus’s growing IP portfolio and recent ecosystem milestones, visit: https://alphamodus.com/press-room
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Alpha Modus’s actual results may differ from their expectations, estimates, and projections, and, consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions (or the negative versions of such words or expressions) are intended to identify such forward-looking statements, but are not the exclusive means of identifying these statements. These forward-looking statements include, without limitation, Alpha Modus’s expectations with respect to future performance.
Alpha Modus Holdings, Inc. (“Alpha Modus”) cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Alpha Modus does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.
Contact Information
Investor Relations
Alpha Modus Holdings, Inc.
Email: ir@alphamodus.com
Website: www.alphamodus.com
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A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5a84231f-ea70-46e2-b965-6bd06aba64ff
FAQ
What patents is Alpha Modus (NASDAQ: AMOD) claiming Rackspace infringed?
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