Alpha Modus files patent lawsuit against RetailNext over AI retail tech

Alpha Modus Holdings Inc. (NASDAQ: AMOD) filed a patent infringement lawsuit against RetailNext Inc. in the U.S. District Court for the Eastern District of Texas, the company announced September 26.

The complaint alleges RetailNext used Alpha Modus inventions without authorization from four U.S. patents covering systems for real-time shopper behavior tracking, store layout optimization, and integration of physical and digital customer insights.

The disputed patents include U.S. Patent Nos. 10,853,825; 11,049,120; 12,039,550; and 11,042,890, according to the filing.

RetailNext operates in over 100 countries and serves more than 560 retail brands including Macy's, Ulta, Bloomingdale's, Estée Lauder, Allbirds, and Kendra Scott. The company received a majority growth investment from Battery Ventures in January 2025.

RetailNext's platform uses sensor networks and data analytics to provide insights on foot traffic patterns, dwell times, conversion metrics, predictive forecasting, and theft prevention for physical retail locations.

Alpha Modus claims these capabilities rely on its patented innovations designed to bring digital-level analytics to physical retail environments. The company stated it remains prepared to litigate while seeking constructive resolution when possible.

Alpha Modus develops AI-driven retail technology through its subsidiary Alpha Modus Corp. The company maintains a patent portfolio focused on retail engagement, consumer analytics, and digital transformation systems.

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