Alpha Modus Corp v. Cooler Screens Inc

I. Executive Summary and Procedural Information

• Parties & Counsel:
  • Plaintiff: Alpha Modus, Corp. (Florida)
  • Defendant: Cooler Screens, Inc. (Delaware)
  • Plaintiff’s Counsel: Prince Lobel Ttye LLP
• Case Identification: 1:25-cv-10004, N.D. Ill., 02/05/2026
• Venue Allegations: Venue is alleged to be proper in the Northern District of Illinois because the Defendant, Cooler Screens, Inc., maintains a principal place of business within the district.
• Core Dispute: Plaintiff alleges that Defendant’s digital smart screen products, used in retail environments, infringe seven U.S. patents related to the real-time monitoring, analysis, and influencing of in-store consumer behavior.
• Technical Context: The technology at issue involves using sensors, cameras, and data analytics to create interactive digital experiences in physical retail stores, aiming to provide capabilities similar to online retail and counter the trend of "showrooming."
• Key Procedural History: Plaintiff Alpha Modus acquired the asserted patent portfolio from the original inventor, eyeQ, in 2018. The complaint alleges that Plaintiff engaged in licensing discussions with Defendant Cooler Screens in January 2020, putting Defendant on notice of the patents. It is also alleged that Defendant's founder was aware of the technology prior to these discussions through his former role at Walgreens, which had met with eyeQ. Plaintiff previously filed and resolved separate infringement lawsuits against Walgreens and Kroger concerning the same accused technology.

Case Timeline

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.

The Invention Explained

• Problem Addressed: The patent's background describes the problem of "showrooming," where shoppers visit a physical store to examine a product but then purchase it from an online retailer '571 Patent, col. 1:41-45 This occurs because brick-and-mortar stores lack the data-driven tools of online retail to provide optimized, relevant messaging to influence purchasing decisions in real-time '571 Patent, col. 1:58-62
• The Patented Solution: The invention proposes a method and system that use "information monitoring devices" such as cameras in a retail environment to gather real-time data about shoppers, including demographics, sentiment (e.g., happy, sad), and tracking information (e.g., eye movement) '571 Patent, abstract Compl. ¶34 This data is analyzed in real-time to provide personalized responses, such as targeted advertisements on digital displays or coupons, to enhance the in-store experience and influence a purchase decision '571 Patent, FIG. 1 Compl. ¶40
• Technical Importance: The technology sought to equip physical retailers with the real-time analytical and responsive marketing capabilities previously associated primarily with e-commerce Compl. ¶32

Key Claims at a Glance

• The complaint asserts independent Claim 1 Compl. ¶247
• The essential elements of Claim 1 include:
  • Using one or more information monitoring devices (comprising video image devices) to gather information about persons at a location, including a demographic characteristic, a sentiment characteristic, and a tracking characteristic.
  • Providing an opt-out option to the persons.
  • Analyzing in real time the gathered information for persons who have not opted out.
  • Providing a response in real time based on the analysis, selected from a group including: engaging the person via a display, sending a communication to a second person, providing marketing information, or providing a coupon.
• The complaint also asserts dependent claims 2, 4-10, 12, 15, 17, 18, 20-23, and 26-27 Compl. ¶247

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.

The Invention Explained

• Problem Addressed: The '825 Patent addresses the same "showrooming" problem faced by brick-and-mortar retailers who cannot compete with the data-driven, personalized experiences offered by online retailers '825 Patent, col. 1:44-48, 1:61-65
• The Patented Solution: The method described in this patent focuses on gathering specific data about a "first person" (a shopper), including their movement and interaction with a product they have picked up '825 Patent, abstract Compl. ¶59 The system analyzes this information in real time to monitor the movement of the person and/or product, and then sends a communication to a "second person" (e.g., a sales associate) to inform them, enabling a timely and direct interaction with the shopper '825 Patent, col. 18:6-18 Compl. ¶291 Figure 1 of the patent illustrates the system architecture of various monitoring devices communicating with a central server '825 Patent, FIG. 1
• Technical Importance: This technology aims to create a responsive in-store environment by using real-time shopper data to proactively inform and dispatch store employees for personalized customer assistance Compl. ¶57

Key Claims at a Glance

• The complaint asserts independent Claim 15 Compl. ¶281
• The essential elements of Claim 15 include:
  • Using information monitoring devices to gather information about a first person, including a tracking characteristic (movement) and object identification information of a product the person has picked up.
  • Analyzing the gathered information in real time to generate an analysis.
  • Utilizing the analysis to monitor the movement of the first person or the product within the retail store.
  • Sending a communication to a second person at the retail store to inform them of the movement, enabling the second person to directly interact with the first person.
• The complaint also asserts dependent claims 19-23 Compl. ¶281

U.S. Patent No. 10,977,672 - "Method And System For Real-Time Inventory Management, Marketing, And Advertising In A Retail Store"

• Patent Identification: U.S. Patent No. 10,977,672, "Method And System For Real-Time Inventory Management, Marketing, And Advertising In A Retail Store," issued April 13, 2021.
• Technology Synopsis: This patent describes a system for use on a visual display in a retail store. The system uses image recognition to identify the inventory of products at the display, displays product and pricing information, receives real-time data about a customer, and generates a promotion for the customer based on behavioral analytics Compl. ¶¶80, 84
• Asserted Claims: Claims 1-3 and 6-18 Compl. ¶313
• Accused Features: The accused products are alleged to embody this system via a platform including a server, software and hardware for identifying products using cameras, digital screens for displaying product and pricing information, and an engine for generating real-time promotions based on behavioral analytics Compl. ¶¶315-320

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.
• Technology Synopsis: This patent discloses a method for providing customer assistance by using monitoring devices to gather information about a person's interaction with a product, including object identification and sentiment. The system analyzes this information in real-time and provides a response, such as directing the person to a location or sending a communication to a second person (e.g., store staff) to interact with the customer regarding the product Compl. ¶¶104, 107
• Asserted Claims: Claims 1-10, 13, and 14 Compl. ¶342
• Accused Features: The accused products allegedly gather object identification and sentiment information from shoppers, analyze it in real time, and provide responses such as directing shoppers to a location or providing advertising and promotions Compl. ¶¶344-350

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.
• Technology Synopsis: This patent describes a method for optimizing a retail store layout. The system uses monitoring devices to gather traffic information (shopper movement, stops) and product interaction information. It then analyzes this data to generate a "layout analysis" which is used to modify the store's initial product layout to a new, second layout Compl. ¶¶127, 131
• Asserted Claims: Claims 1, 5, 9-10, and 14 Compl. ¶372
• Accused Features: The accused platform is alleged to gather traffic and product interaction data using sensors and then utilize a "layout analysis" to generate and modify a store's planogram Compl. ¶¶379-383

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.
• Technology Synopsis: This patent discloses a method for inventory management that uses monitoring devices to gather product interaction information (e.g., products picked up or carried away). This data is analyzed in real-time to manage inventory, triggering a response such as sending a communication to a retail person to check inventory, restock a product, or add a product to an inventory order Compl. ¶¶152, 156
• Asserted Claims: Claims 1-3 and 13-16 Compl. ¶405
• Accused Features: The accused products are alleged to gather product interaction information and, based on real-time analysis, send communications to retail staff to check inventory levels or optimize inventory by adding a product to an order Compl. ¶¶411-414

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.
• Technology Synopsis: This patent describes a method where an "information analysis" about shopping activities (traffic, product interaction, object identification) is obtained and provided to a "brand entity." The brand entity then uses this analysis to enhance the in-store experience, for example through targeted engagement, marketing, or coupons based on the brand's products Compl. ¶¶177, 181
• Asserted Claims: Claims 1-11 Compl. ¶436
• Accused Features: The accused products are alleged to obtain an information analysis about shoppers and provide that analyzed data to third parties, including brand entities, which then use it to engage customers with targeted ads and promotions on the in-store screens Compl. ¶¶438, 443-444

III. The Accused Instrumentality

Product Identification

• The accused products are Cooler Screens' "digital smart screens technology" deployed in retail stores, often as interactive cooler doors Compl. ¶237 Compl. ¶250

Functionality and Market Context

• The Accused Products consist of digital displays integrated with sensors, cameras, and monitoring software Compl. ¶249 The system is alleged to capture a range of real-time data about nearby shoppers, including their presence, dwell time, interactions with the screen, and demographic characteristics Compl. ¶¶249, 253, 255 This data is processed by analytics servers to deliver targeted, real-time content, such as product-specific advertisements, promotions, and QR-code coupons on the digital displays Compl. ¶¶251, 258-259 The complaint provides an image from the '571 patent, FIG. 2, showing an example of the type of facial analysis data—including gender, age, and sentiment—that the patented technology is designed to gather Compl. p. 7 The complaint also alleges the system can generate communications to store personnel and modify store planograms based on the collected data Compl. ¶291 Compl. ¶383

IV. Analysis of Infringement Allegations

'571 Patent Infringement Allegations

'825 Patent Infringement Allegations

Identified Points of Contention

• Scope Questions: The infringement analysis for the '571 Patent may raise the question of whether the Defendant's alleged method of "analyzing customer behavior" Compl. ¶254 meets the claim's specific requirement of gathering a "sentiment characteristic." The patent specification provides examples such as "happy, sad, angry, surprised" '571 Patent, col. 13:58-14:5, which may frame a dispute over whether general behavioral metrics constitute sentiment.
• Technical Questions: For the '825 Patent, a key technical question may be whether the accused system's alleged "functionality for sending a communication" Compl. ¶291 is sufficient to meet the method step of "sending a communication to a second person." The resolution could depend on whether the capability alone is sufficient for infringement or if evidence of the communication actually being sent and used to facilitate an interaction is required.

V. Key Claim Terms for Construction

For the '571 Patent:

• The Term: "sentiment characteristic" (Claim 1)
• Context and Importance: This term is central because the complaint alleges infringement based on "analyzing customer behavior captured by the information monitoring devices" Compl. ¶254 Practitioners may focus on this term because its definition will determine whether general behavioral analytics (e.g., dwell time, turning away) are sufficient to infringe, or if the claim requires a more specific determination of a shopper's emotional state.
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: The claim term itself is not explicitly limited to specific emotions, which may support an interpretation that covers any observable characteristic indicative of a shopper's disposition toward a product or display.
  • Evidence for a Narrower Interpretation: The specification provides an exemplary list of sentiments: "happy, sad, angry, surprised" '571 Patent, col. 13:58-14:5 A party could argue this list defines the scope and limits the term to specific, identifiable emotional states rather than general behavioral inferences. The complaint provides an image from the patent, FIG. 2, which visualizes such specific sentiment analysis Compl. p. 7

For the '825 Patent:

• The Term: "sending a communication to a second person at the retail store to inform the second person" (Claim 15)
• Context and Importance: This step is a critical part of the claimed method, which focuses on facilitating human interaction. The complaint alleges the accused product "provides functionality for sending a communication" Compl. ¶291 The dispute will likely center on whether providing the capability to send a communication infringes a method claim that recites the active step of "sending."
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: A party might argue that by providing an automated system configured to generate and transmit such alerts as its intended function, the defendant is "sending" the communication within the meaning of the claim, regardless of whether a store employee acts on it every time.
  • Evidence for a Narrower Interpretation: The plain language "sending" suggests an action must be performed. The specification describes this as an active step to "signal the employee to interact with the customer" '825 Patent, col. 4:35-38, which may support an argument that the communication must actually be transmitted for the step to be practiced.

VI. Other Allegations

• Indirect Infringement: The complaint alleges induced infringement for all asserted patents. It claims Cooler Screens knowingly encourages and directs its customers, such as Walgreens, to use the Accused Products in a manner that directly infringes the patents' claims Compl. ¶¶270-276 Compl. ¶¶302-308 This allegation is supported by claims of pre-suit knowledge from licensing discussions Compl. ¶272
• Willful Infringement: Willfulness is alleged for all asserted patents. The complaint bases this on Cooler Screens' alleged pre-suit knowledge of the patents, stemming from licensing discussions that began around January 2020, and its subsequent and ongoing alleged infringement Compl. ¶¶265-266 Compl. ¶¶297-298 The complaint further alleges that Defendant made no efforts to avoid infringement despite this knowledge Compl. ¶267

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

• A core issue will be one of technical and evidentiary proof: Can Plaintiff demonstrate that the Accused Products perform the specific functions recited in the claims? This may include showing that the system's "behavioral analysis" meets the definition of gathering a "sentiment characteristic" under the '571 Patent, or that the system actually "sends a communication to a second person" to facilitate an interaction as required by the '825 Patent, moving beyond mere functionality.
• A second central question will be one of claim scope and construction: The case will likely turn on how the court construes key terms such as "sentiment characteristic." Whether this term is interpreted broadly to cover general behavioral metrics or narrowly to require specific emotional state detection will be critical in determining the boundary between the patented inventions and conventional retail analytics.
• Finally, a key question for damages will be willfulness: Given the complaint's detailed allegations regarding pre-suit licensing discussions and Defendant's alleged awareness of the technology through its founder's prior business dealings, the court will need to evaluate whether Defendant's alleged infringement, if proven, was willful, which could expose it to enhanced damages.