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Alpha Modus Ventures Files Federal Lawsuit Against Rackspace for Infringement of Foundational Fibre Channel over Ethernet Patents

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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.

Alpha Modus Ventures (NASDAQ: AMOD) ha presentato la sua settima causa federale contro Rackspace US, Inc. per presunta violazione intenzionale di tre brevetti fondamentali relativi alla tecnologia Fibre Channel over Ethernet (FCoE). La causa, depositata nel Distretto Occidentale del Texas, sostiene che Rackspace abbia utilizzato illegalmente le tecnologie brevettate di AMV nei suoi prodotti DCX® 8510 Backbone e Gen 5 Fibre Channel.

L’azione legale fa parte del programma strategico di monetizzazione della proprietà intellettuale di AMOD, che ha già siglato quattro partnership. L’azienda richiede un aumento dei danni secondo la legge sui brevetti degli Stati Uniti, citando l’uso non autorizzato da parte di Rackspace delle loro innovazioni nel trasporto dati per soluzioni cloud e infrastrutture aziendali.

Alpha Modus Ventures (NASDAQ: AMOD) ha presentado su séptima demanda federal contra Rackspace US, Inc. por presunta infracción intencional de tres patentes fundamentales relacionadas con la tecnología Fibre Channel over Ethernet (FCoE). La demanda, presentada en el Distrito Oeste de Texas, alega que Rackspace utilizó ilegalmente las tecnologías patentadas de AMV en sus productos DCX® 8510 Backbone y Gen 5 Fibre Channel.

La acción legal forma parte del programa estratégico de monetización de propiedad intelectual de AMOD, que ya ha asegurado cuatro asociaciones. La compañía busca daños incrementados bajo la ley de patentes de EE.UU., citando el uso no autorizado por parte de Rackspace de sus innovaciones en transporte de datos en soluciones de infraestructura en la nube y empresarial.

Alpha Modus Ventures (NASDAQ: AMOD)Rackspace US, Inc.를 상대로 세 번째 연방 소송을 제기했습니다. 이 소송은 Fibre Channel over Ethernet (FCoE) 기술과 관련된 세 가지 핵심 특허의 고의 침해를 주장합니다. 텍사스 서부 지방법원에 제출된 이 소송은 Rackspace가 AMV의 특허 기술을 DCX® 8510 Backbone 및 Gen 5 Fibre Channel 제품에 불법적으로 사용했다고 주장합니다.

이번 법적 조치는 AMOD의 전략적 지식재산권 수익화 프로그램의 일환으로, 이미 네 건의 파트너십을 확보했습니다. 회사는 미국 특허법에 따라 Rackspace가 클라우드 및 기업 인프라 솔루션에서 자사의 데이터 전송 혁신을 무단으로 사용한 점을 근거로 손해배상액 증액을 요구하고 있습니다.

Alpha Modus Ventures (NASDAQ : AMOD) a déposé sa septième plainte fédérale contre Rackspace US, Inc. pour violation intentionnelle présumée de trois brevets fondamentaux liés à la technologie Fibre Channel over Ethernet (FCoE). La plainte, déposée dans le district ouest du Texas, affirme que Rackspace a utilisé illégalement les technologies brevetées d'AMV dans ses produits DCX® 8510 Backbone et Gen 5 Fibre Channel.

Cette action en justice fait partie du programme stratégique de monétisation de la propriété intellectuelle d'AMOD, qui a déjà conclu quatre partenariats. La société demande des dommages-intérêts majorés en vertu de la loi américaine sur les brevets, invoquant l'utilisation non autorisée par Rackspace de leurs innovations en matière de transport de données dans les solutions cloud et d'infrastructure d'entreprise.

Alpha Modus Ventures (NASDAQ: AMOD) hat seine siebte Bundesklage gegen Rackspace US, Inc. wegen angeblicher vorsätzlicher Verletzung von drei grundlegenden Patenten im Zusammenhang mit der Fibre Channel over Ethernet (FCoE)-Technologie eingereicht. Die Klage, eingereicht im Western District von Texas, behauptet, Rackspace habe AMVs patentierte Technologien in seinen DCX® 8510 Backbone- und Gen 5 Fibre Channel-Produkten unrechtmäßig verwendet.

Die rechtliche Maßnahme ist Teil von AMODs strategischem IP-Monetarisierungsprogramm, das bereits vier Partnerschaften gesichert hat. Das Unternehmen fordert erhöhte Schadensersatzansprüche nach US-Patentrecht und verweist auf die unautorisierte Nutzung ihrer Datenübertragungstechnologien durch Rackspace in Cloud- und Unternehmensinfrastrukturlösungen.

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

Insights

Alpha Modus' lawsuit against Rackspace represents strategic IP monetization with potential revenue upside, but faces typical patent litigation uncertainties.

Alpha Modus Ventures' federal lawsuit against Rackspace marks their seventh IP enforcement action, targeting alleged infringement of three foundational patents related to Fibre Channel over Ethernet (FCoE) technology. This legal strategy aligns with their broader patent monetization program that has already yielded four partnership agreements.

The litigation specifically targets Rackspace's use of technologies in their DCX® 8510 Backbone and Gen 5 Fibre Channel offerings. What's technically notable is the lawsuit involves expired but still enforceable patents (11,108,591, 11,310,077, and 11,303,473), which limits the potential remedies to past damages rather than ongoing royalties or injunctive relief.

The company is pursuing enhanced damages under U.S. patent law by claiming willful infringement, which could potentially triple any monetary award if proven. This represents a calculated legal strategy, as willfulness claims face heightened evidentiary standards post-Halo Electronics v. Pulse Electronics.

From a litigation perspective, these types of enterprise technology patent cases typically face 24-36 month timelines with success rates below 30% for plaintiffs. However, most result in settlements before trial. The Western District of Texas venue choice is strategic, as it's historically favorable to patent holders despite recent procedural changes limiting judge selection.

This action represents one facet of Alpha Modus' multi-pronged commercialization strategy spanning licensing, litigation, and partnership development across AI, retail, fintech, and networking sectors – suggesting the company is leveraging IP assets as a central value driver rather than merely defensive tools.

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.

Alpha Modus Ventures sues Cisco

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?

Alpha Modus claims Rackspace infringed three U.S. patents: 11,108,591, 11,310,077, and 11,303,473, which relate to Fibre Channel over Ethernet (FCoE) transformation technology.

How many patent enforcement actions has Alpha Modus initiated?

This lawsuit against Rackspace marks Alpha Modus' seventh strategic enforcement action in their IP monetization program.

What products are involved in Alpha Modus' patent lawsuit against Rackspace?

The lawsuit involves Rackspace's DCX® 8510 Backbone and Gen 5 Fibre Channel offerings, which use Brocade FCOE10-24 Blades and Data Center Bridging.

How many partnerships has Alpha Modus secured through its IP monetization program?

Alpha Modus has secured four high-impact partnerships that now anchor their growing digital ecosystem.

What damages is Alpha Modus seeking in the Rackspace patent lawsuit?

Alpha Modus is seeking enhanced damages under U.S. patent law for alleged egregious infringement of their patents.
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