Alpha Modus sues H&M over in-store AI patent infringement

Alpha Modus Corp. (NASDAQ: AMOD) 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 on December 3, 2025.

The North Carolina-based retail technology company alleges that H&M's U.S. retail operations infringe five Alpha Modus patents covering real-time shopper analytics, store layout optimization, inventory intelligence, personalized marketing, and point-of-sale workflow automation.

The patents in question are U.S. Patent Nos. 11,042,890; 11,049,120; 11,301,880; 12,026,731; and 12,354,121. These patents 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 uses 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 stores across the United States.

Alpha Modus CEO William Alessi stated that the company has invested for more than a decade in engineering, deploying, and commercializing patented in-store AI technologies. "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," Alessi said.

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 including enhanced damages for alleged willful infringement and attorneys' fees.

Alpha Modus noted it has entered into multiple licensing and business agreements with companies that have chosen to access the company's patented technologies through negotiated arrangements.

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