Alpha Modus Corp v. Circle K Stores Inc

I. Executive Summary and Procedural Information

• Parties & Counsel:
  • Plaintiff: Alpha Modus, Corp. (Florida)
  • Defendant: Circle K Stores Inc. (Delaware)
  • Plaintiff's Counsel: Prince Lobel Tye LLP
• Case Identification: 2:26-cv-00335, E.D. Tex., 07/24/2026
• Venue Allegations: Venue is alleged to be proper based on Defendant operating multiple "regular and established places of business" within the Eastern District of Texas.
• Core Dispute: Plaintiff alleges that Defendant's in-store analytics, mobile applications, AI-powered checkout systems, and inventory management technologies infringe a portfolio of five patents related to the real-time analysis of consumer behavior in retail environments.
• Technical Context: The technology involves using in-store sensors, primarily video cameras, to gather and analyze real-time data on shopper demographics, sentiment, and behavior to enable personalized marketing, dynamic promotions, and automated inventory management.
• Key Procedural History: The complaint notes that Plaintiff has previously entered into intellectual property licensing agreements for its patented technology outside of litigation. For several of the patents-in-suit, the complaint also notes that while the U.S. Patent and Trademark Office initially rejected claims on patent eligibility grounds, the claims were subsequently determined to be patent-eligible after amendment and argument during prosecution.

Case Timeline

Date	Event
2013-07-19	Priority Date for '571, '890, '880, '731, and '718 Patents
2019-07-23	'571 Patent Issued
2021-06-22	'890 Patent Issued
2022-04-12	'880 Patent Issued
2024-07-02	'731 Patent Issued
2025-09-23	'718 Patent Issued
2026-07-24	Amended Complaint Filed

II. Technology and Patent(s)-in-Suit Analysis

U.S. Patent No. 10,360,571

• Patent Identification: U.S. Patent No. 10,360,571, "Method For Monitoring And Analyzing Behavior And Uses Thereof," issued July 23, 2019 Compl. ¶23
• The Invention Explained:
  • Problem Addressed: The patent addresses the problem of "showrooming," where shoppers examine products in brick-and-mortar stores but then purchase them from online retailers Compl. ¶17 Physical retailers historically lacked the real-time, data-driven analytical tools available to online competitors to influence in-store purchasing decisions '571 Patent, col. 2:9-24
  • The Patented Solution: The invention proposes a method and system that uses in-store "information monitoring devices," such as video cameras, to gather real-time data about shoppers, including their demographics (age, gender), sentiment (e.g., happiness), and movements Compl. ¶31 This data is analyzed in real-time to provide targeted responses, such as personalized marketing on digital displays, coupons, or alerts to sales associates, thereby creating an enriched in-store experience intended to influence purchasing decisions '571 Patent, abstract '571 Patent, col. 3:7-13 The system architecture, connecting in-store devices to a cloud-based analysis engine, is depicted in a figure in the complaint Compl. p. 6, FIG. 1
  • Technical Importance: This technology aims to level the playing field between physical and online retail by equipping brick-and-mortar stores with the capability to analyze consumer behavior and dynamically adjust marketing in real-time Compl. ¶16
• Key Claims at a Glance:
  • The complaint asserts independent Claim 1 Compl. ¶134
  • The essential elements of Claim 1 are:
    • (a) Using one or more information monitoring devices (including video devices) to gather information about persons at a location, comprising gathering demographic, sentiment, and tracking characteristics.
    • (b) Providing an opt-out option to the persons.
    • (c) Analyzing in real time the gathered information for persons who have not opted-out.
    • (d) Providing a response in real time based on the analysis, where the response is selected from engaging the person via a display, sending a communication to a second person (e.g., a store employee), providing marketing/advertising, or providing a coupon.
  • The complaint also asserts numerous dependent claims Compl. ¶134

U.S. Patent No. 11,042,890

• Patent Identification: U.S. Patent No. 11,042,890, "Method And System For Customer Assistance In A Retail Store," issued June 22, 2021 Compl. ¶44 Compl. ¶47
• The Invention Explained:
  • Problem Addressed: The patent builds on the same challenges facing brick-and-mortar retailers, focusing on providing targeted customer assistance by analyzing real-time interactions between shoppers and specific products '890 Patent, col. 2:38-44
  • The Patented Solution: The method uses monitoring devices to gather "object identification information" for a product a person is interested in, as well as "sentiment information" about the person concerning that product Compl. ¶52 This information is analyzed in real time to both manage inventory and provide a variety of responses, such as directing the person to a product location, engaging them with a display, alerting a store employee, or offering marketing and coupons '890 Patent, claim 1
  • Technical Importance: The invention refines the broader concept of shopper analysis by linking a customer's sentiment and interest directly to a specific, identified product, enabling more granular and targeted real-time responses Compl. ¶51
• Key Claims at a Glance:
  • The complaint asserts independent Claim 1 Compl. ¶167
  • The essential elements of Claim 1 are:
    • (a) Using monitoring devices to gather information about a person at a retail store, comprising gathering (A) object identification information of a product of interest and (B) sentiment information of the person with respect to the product.
    • (b) Analyzing the information in real time to manage inventory.
    • (c) Providing a real-time response based on the analysis, selected from directing the person to the product, engaging the person via a display, alerting a second person, providing marketing, or providing a coupon.
  • The complaint also asserts numerous dependent claims Compl. ¶167

Multi-Patent Capsule: U.S. Patent No. 11,301,880

• Patent Identification: U.S. Patent No. 11,301,880, "Method And System For Inventory Management In A Retail Store," issued April 12, 2022 Compl. ¶64 Compl. ¶67
• Technology Synopsis: This patent focuses on real-time inventory management. It discloses a method using monitoring devices to gather information about shopper activities, specifically tracking "product interaction information" (e.g., when a product is picked up) and "object identification information." The system analyzes this data in real time to manage inventory and provides responses such as sending a communication to a retail employee to check inventory, restock a product, or add a product to an inventory order Compl. ¶¶69-73 '880 Patent, claim 1
• Asserted Claims: At least Claim 1 Compl. ¶199
• Accused Features: The complaint alleges that Circle K's systems gather product interaction and identification information (e.g., when a customer picks up a product) and, based on real-time analysis, send communications to personnel to check inventory, restock products, or initiate replenishment actions Compl. ¶¶206-212

Multi-Patent Capsule: U.S. Patent No. 12,026,731

• Patent Identification: U.S. Patent No. 12,026,731, "Method For Personalized Marketing And Advertising Of Retail Products," issued July 2, 2024 Compl. ¶85 Compl. ¶88
• Technology Synopsis: This invention discloses a method for personalized marketing based on a shopper's location and history. The method involves obtaining an analysis of a person's shopping activities (including product interactions), tracking the person's location using a second set of monitoring devices, and then providing a location-based communication via an interactive device. This communication can include marketing, coupons, or purchase options related to products the person previously interacted with Compl. ¶¶90-94 '731 Patent, claim 1
• Asserted Claims: At least Claim 1 Compl. ¶233
• Accused Features: The complaint alleges Circle K's systems analyze shopping activities, track customer locations, and provide communications to customers' mobile devices that include location-specific marketing, coupons, and purchase options based on prior interactions Compl. ¶¶235-245

Multi-Patent Capsule: U.S. Patent No. 12,423,718

• Patent Identification: U.S. Patent No. 12,423,718, "Methods and Systems for Providing Customer Assistance in a Retail Store," issued September 23, 2025 Compl. ¶106 Compl. ¶109
• Technology Synopsis: This patent is directed to improving checkout accuracy and customer assistance. The claimed method involves using monitoring devices to generate a list of products a person "retained" while shopping, tracking the person to a point-of-sale area, identifying the "being-purchased" products, and comparing the two lists. In response to a mismatch, the system can select and send a communication to a sales associate to intervene and interact with the person Compl. ¶¶111-114 '718 Patent, claim 1
• Asserted Claims: At least Claim 1 Compl. ¶266
• Accused Features: The complaint alleges that Circle K's systems are capable of creating a list of products retained by a customer, comparing that list to items presented at a point-of-sale, and alerting sales associates to potential discrepancies Compl. ¶¶272-276

III. The Accused Instrumentality

• Product Identification: The complaint identifies the "Accused Products" as a combination of technologies used by Circle K, including: (a) its network of in-store cameras and associated analytics servers; (b) its mobile app, including the "Inner Circle" rewards program and "Scan, Pay, Go" functionality; (c) AI-powered self-checkout systems from Mashgin; (d) digital signage solutions from vendors such as Creative Realities; and (e) inventory management and replenishment software from vendors such as Relex Solution Compl. ¶127
• Functionality and Market Context: The complaint alleges these disparate systems operate in concert to practice the patented methods Compl. ¶128 In-store cameras and sensors are alleged to gather information about shoppers Compl. ¶136 This data is allegedly processed by analytics servers, including cloud infrastructure from Google and Oracle Compl. ¶138 The system then allegedly provides real-time responses through Circle K's mobile app, digital signage, and by alerting store associates Compl. ¶¶144-146 The complaint suggests these technologies provide Circle K with significant competitive advantages and commercial gains in the retail market Compl. ¶130 Compl. ¶132

IV. Analysis of Infringement Allegations

'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...wherein...the one or more information monitoring devices comprise one or more video image devices;	Circle K employs devices including video cameras, POS systems, and sensors to gather information about shoppers in its stores.	¶136; ¶139	col. 3:25-31
(iv) ...gathering a demographic characteristic of the persons...	The information monitoring devices, including video analytics technologies, collect demographic characteristics of persons.	¶140	col. 9:57-64
(v) ...gathering a sentiment characteristic of the persons...	Circle K gathers sentiment information by analyzing customer behavior, including an "intention to commit theft, an intention to purchase a product, and acts indicating positive brand association."	¶141	col. 21:55-59
(vi) ...gathering a tracking characteristic of the persons...	The Accused Products gather traffic information, including tracking customer movement using computer-vision, Wi-Fi tracking, and Bluetooth.	¶142	col. 22:1-4
(b) providing an opt-out option to the persons in the group of persons...	The Accused Products provide an opt-out option to customers.	¶143	col. 11:35-39
(c) analyzing in real time...the information gathered...	Circle K's systems and servers analyze the collected information to provide real-time responses. This is inferred from allegations that the systems provide real-time marketing, coupons, and associate alerts.	¶138; ¶144; ¶145; ¶146	col. 22:7-17
(d) providing a response in real time based upon the analyzed information...	Circle K engages customers via store associates, provides marketing and advertising to customer mobile devices, and provides digital and printed coupons in real time.	¶144; ¶145; ¶146	col. 22:18-22

'890 Patent Infringement Allegations

Claim Element (from Independent Claim 1)	Alleged Infringing Functionality	Complaint Citation	Patent Citation
(a)(iii)(A) gathering object identification information of a product that the person is interested in purchasing...	Using computer-vision, image-recognition, barcode scanning, and RFID, Circle K's systems gather object identification information of products a person is interested in purchasing.	¶172	col. 12:5-14
(a)(iii)(B) gathering sentiment information of the person with respect to the product;	Circle K analyzes customer behavior to gather sentiment information, including "an intention to commit theft, an intention to purchase a product, and acts indicating positive brand association."	¶173	col. 13:56-62
(b) analyzing the information in real time...to manage inventory of the products in the retail store...	Circle K analyzes the object identification and sentiment information in real time using servers and databases "to evaluate shopping activities of customers and to track and manage inventory of products."	¶174	col. 14:1-5
(c) providing a response in real time based upon the analyzed information...	Circle K's systems provide real-time responses including sending communications to customers' mobile apps, alerting store associates, providing marketing/advertising, and delivering coupons.	¶175; ¶176; ¶177; ¶178	col. 14:6-10

• Identified Points of Contention:
  • Scope Questions: The complaint's characterization of "sentiment" as including "intention to commit theft" or "positive brand association" Compl. ¶141 Compl. ¶173 raises a question of claim scope. The patents provide examples of sentiment as emotional states like "Happy" or "Surprise" '571 Patent, FIG. 2, and a court may need to determine if the claimed term is broad enough to cover these alleged commercial intentions. The complaint shows a figure from the patent that illustrates sentiment analysis as an overlay on a person's face with values for "Anger," "Happy," "Sad," and "Surprise" Compl. p. 6, FIG. 2 This visual evidence may be used to argue for a narrower construction limited to emotional states.
  • Technical Questions: The complaint alleges that a combination of disparate technologies from multiple vendors (e.g., Mashgin, Creative Realities, Relex Solution) Compl. ¶127 collectively perform the steps of the claimed methods. A point of contention may be whether these systems are, in fact, integrated to perform the "gather-analyze-respond" loop as a single infringing method, or if they perform their functions independently. For example, what evidence shows that the "AI-powered self-checkout systems from Mashgin" Compl. ¶127 are operably connected to the "digital signage solutions from Creative Realities" Compl. ¶127 to provide a real-time response based on analysis of a shopper's sentiment?

V. Key Claim Terms for Construction

• The Term: "sentiment characteristic" (asserted in '571 and '890 Patents)

  • Context and Importance: This term is a cornerstone of the infringement allegations. The dispute will likely center on whether the data Circle K allegedly gathers (e.g., "intention to purchase a product") qualifies as a "sentiment characteristic" as that term is used in the patents.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The claim language itself does not explicitly limit the term to emotions. A plaintiff may argue that "sentiment" in a commercial context broadly includes a consumer's disposition or intention toward a product, which could encompass the alleged "positive brand association" Compl. ¶141
    • Evidence for a Narrower Interpretation: The specification provides specific examples like "happy, % sad, % angry, % surprised" '571 Patent, col. 13:62-64 and includes a figure showing an analysis of these emotional states '571 Patent, FIG. 2 A defendant may argue these specific embodiments define the scope of the term, limiting it to emotional states and excluding the commercial "intentions" alleged in the complaint.

• The Term: "analyzing in real time" (asserted in '571 and '890 Patents)

  • Context and Importance: Practitioners may focus on this term because the patents' alleged novelty lies in providing a real-time advantage over historical data analysis. The definition will be critical in determining whether the accused system, which integrates various components, operates quickly enough to infringe.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The patents do not provide a specific numerical time limit for "real time." A plaintiff could argue it means fast enough to influence a consumer's current shopping trip, which could be on the order of seconds or even minutes.
    • Evidence for a Narrower Interpretation: The patents describe influencing a "purchasing decision" and providing responses like on-screen promotions or coupons at the shelf '571 Patent, col. 2:32-38, which implies a near-instantaneous analysis-and-response loop. A defendant could argue that any system involving significant processing latency fails to meet this requirement.

VI. Other Allegations

• Indirect Infringement: The complaint includes separate counts for induced infringement for each of the five patents-in-suit (Compl. ¶157; Compl. ¶158; Compl. ¶159; Compl. ¶160; Compl. ¶161; Compl. ¶162; Compl. ¶163; Compl. ¶164; Compl. ¶165). The allegations are predicated on Circle K knowingly encouraging and directing its customers and employees to use the Accused Products in a manner that infringes the patents, consistent with Circle K's instructions Compl. ¶160 Compl. ¶162
• Willful Infringement: Willfulness is alleged for all five patents. The complaint bases the allegation of knowledge on awareness of the patents "at least as early as the filing of this Amended Complaint" Compl. ¶129 It further alleges that Circle K "knew or was willfully blind" to the infringement and acted with "blatant disregard for Alpha Modus's patent rights" Compl. ¶153

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

• A core issue will be one of definitional scope: Can the term "sentiment characteristic", which the patents illustrate with explicit emotional states like "happy" and "sad," be construed broadly enough to cover the commercial "intentions" (e.g., "intention to purchase a product," "positive brand association") that the complaint alleges Circle K analyzes?
• A second key question will be evidentiary and functional: Can the plaintiff demonstrate that the collection of accused technologies, sourced from different vendors, are sufficiently integrated to operate as a single, cohesive system that performs the complete "gather-analyze-respond" loop required by the claims, or will the defense be able to show that they are functionally siloed systems?
• Finally, the case may turn on a question of technical operation: Does the accused system's alleged analysis of shopper behavior-such as tracking product interactions-functionally result in the claimed outcome of "managing inventory" in real time, as required by the '890 and '880 patents, or is the connection between the analysis and the inventory management merely indirect or conclusory?