Alpha Modus Files Patent Infringement Lawsuit Against H&M Over In-Store AI and Retail Intelligence Systems
Rhea-AI Summary
Positive
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Negative
- None.
Key Figures
Market Reality Check
Peers on Argus
Momentum scanner shows one peer up (AIFF +4.22%) and one down (NTCL -10.89%), with no same-day peer news, suggesting this lawsuit headline is more stock-specific than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 05 | Kiosk pilot deal | Positive | -6.5% | Pilot for ~100 AlphaCash kiosks with a major national retailer. |
| Dec 03 | Patent lawsuit H&M | Neutral | +1.3% | Filed patent infringement lawsuit against H&M over in-store AI systems. |
| Nov 24 | Coordinated IP actions | Neutral | -5.0% | Filed coordinated patent enforcement actions against V-Count and Stratacache. |
| Nov 19 | Patent lawsuit Zara | Neutral | -6.2% | Filed patent infringement lawsuit against Inditex and Zara in Texas. |
| Nov 18 | Fintech partnership | Positive | -6.3% | Partnership with DolFinTech to add check cashing and money transfer to AlphaCash. |
Recent commercial and partnership announcements often saw negative 24h moves, while AI-enforcement headlines have produced mixed, generally modest reactions.
Over the last two months, Alpha Modus has combined IP enforcement with ecosystem-building. It announced multiple AI retail lawsuits (including actions against Lowe’s, Kroger, V-Count, Stratacache, Inditex/Zara, and now H&M) and secured a patent license/reseller deal with a technology integrator on Nov. 10, 2025. In parallel, it advanced its AlphaCash kiosk strategy via partnerships and a pilot for ~100 kiosks across Texas. This H&M lawsuit continues the AI-enforcement leg of that strategy.
Market Pulse Summary
This announcement highlights Alpha Modus’s effort to enforce five in-store AI and retail-intelligence patents against H&M in the Eastern District of Texas, seeking a jury trial, permanent injunction, and damages based on at least a reasonable royalty. In light of recent lawsuits against other retailers and an AI patent license deal, investors may track how consistently the company converts its IP portfolio into licenses, royalties, or settlements while managing its evolving capital structure.
Key Terms
rfid technical
patent infringement regulatory
reasonable royalty regulatory
permanent injunction regulatory
willful infringement regulatory
AI-generated analysis. Not financial advice.
Suit in Eastern District of Texas asserts five U.S. patents covering shopper analytics, inventory intelligence, personalized marketing, and automated checkout in H&M stores
CORNELIUS, N.C., Dec. 03, 2025 (GLOBE NEWSWIRE) -- Alpha Modus, Corp. (“Alpha Modus”), a U.S.-based retail technology company and subsidiary of Alpha Modus Holdings, Inc. (NASDAQ: AMOD) specializing in in-store AI systems, today announced that it has filed a patent infringement lawsuit against H&M Fashion USA, Inc. in the United States District Court for the Eastern District of Texas, Marshall Division. The complaint alleges that H&M’s U.S. retail operations infringe five Alpha Modus patents directed to real-time shopper analytics, store layout optimization, inventory intelligence, personalized marketing, and point-of-sale workflow automation.
The patents-in-suit—U.S. Patent Nos. 11,042,890; 11,049,120; 11,301,880; 12,026,731; and 12,354,121—stem from inventions dating back to 2013 and cover methods and systems for monitoring shopper behavior, analyzing product interactions, optimizing product placement, managing inventory in real time, and enabling seamless in-store purchase experiences.
According to the complaint, H&M leverages technologies including RFID garment tracking, in-store digital video systems, mobile applications, inventory and replenishment software, and interactive mirrors to collect and act on shopper and product interaction data within H&M-branded stores across the United States. Alpha Modus alleges that these systems practice the patented methods and systems claimed in the asserted patents.
“For more than a decade, Alpha Modus has invested in engineering, deploying, and commercializing patented in-store AI technologies that help retailers understand shoppers in real time, manage inventory more intelligently, and modernize the store experience,” said William Alessi, CEO of Alpha Modus, Corp. “We welcome partners who license and integrate our technology into their operations. At the same time, we have a responsibility to our shareholders, customers, and ecosystem partners to enforce our IP when others use our innovations without authorization.”
“This action is another step in advancing a standardized, trusted infrastructure for in-store AI,” Mr. Alessi continued. “We believe that enforcing these patents ultimately benefits the broader retail market by rewarding those who innovate and invest, while encouraging responsible collaboration through our partner ecosystem.”
The complaint seeks a jury trial, a finding that H&M has directly and indirectly infringed each of the asserted patents, a permanent injunction against further infringing use, and monetary damages of no less than a reasonable royalty, including enhanced damages for alleged willful infringement and an award of attorneys’ fees and costs.
Alpha Modus notes that, in addition to asserting its portfolio in court, it has entered into multiple licensing and business agreements with companies that have chosen to access the company’s patented technologies through negotiated arrangements rather than unlicensed use.
About Alpha Modus, Corp.
Alpha Modus is a vertical AI company focused on real-time, in-store shopper engagement and attribution. Its patented “closed-loop” retail AI framework — Sense → Decide → Deliver → Attribute — enables brands and retailers to measure the full impact of digital content, physical interactions, and transaction outcomes. Through subsidiaries like Alpha Modus Financial Services, the company is actively deploying technologies that merge artificial intelligence, retail media, and financial access across the physical retail landscape.
For more information, visit: www.alphamodus.com
Alpha Modus maintains a comprehensive overview of its patent portfolio on its website: https://alphamodus.com/what-we-do/patent-portfolio/.
For more information and to access Alpha Modus’ press room, 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. 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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