Patent Infringement Lawsuit | Business Litigation | innovation

Introduction: A.I. and I.P.

In a case that highlights the growing intersection between artificial intelligence and intellectual property enforcement, Alpha Modus Corp., a North Carolina-based AI retail solutions provider, has filed a patent infringement lawsuit against Creative Realities, Inc. (CRI) in the U.S. District Court for the Eastern District of Texas. The complaint alleges that CRI’s suite of digital signage and customer engagement products infringe on five of Alpha Modus’s patents covering real-time AI-driven retail technologies.

The case, Alpha Modus Corp. v. Creative Realities, Inc., No. 2:25-cv-00931 (E.D. Tex.), was filed on September 4, 2025, and has been assigned to Judge Rodney Gilstrap, a jurist well known for handling complex patent litigation in one of the country’s most active patent dockets.

The Patents at Issue

Alpha Modus asserts that CRI is infringing the following U.S. patents:

• No. 10,360,571
• No. 10,853,825
• No. 10,977,672
• No. 11,042,890
• No. 11,301,880

These patents broadly cover systems and methods for real-time consumer behavior monitoring, AI-enhanced digital signage, personalized marketing automation, and interactive retail data management. According to the complaint, CRI’s products — including Clarity™, ReflectView™, Reflect Spark™, and AdLogic™ — incorporate technologies that perform substantially similar functions as those claimed in Alpha Modus’s patent portfolio.

Allegations of Infringement

Alpha Modus accuses CRI of both direct and indirect infringement. The company alleges that CRI:

• Makes and sells software platforms that utilize methods covered by the asserted patents;
• Encourages its customers to use the infringing features; and
• Has knowledge of the patents or was willfully blind to them.

The plaintiff is seeking monetary damages, treble damages for willful infringement, injunctive relief, and attorney’s fees. In its public statement, Alpha Modus emphasized that this action reflects its commitment to protecting its innovations in AI-powered retail engagement.

Creative Realities Responds

CRI has vigorously denied the allegations and stated that it intends to defend itself fully. In a press release dated September 8, CRI’s CEO, Rick Mills, stated that the lawsuit is “baseless” and described Alpha Modus as “a company with little revenue and a negative working capital position.” He further criticized the timing and nature of the suit, alleging that CRI was not given prior notice or a chance to resolve the matter amicably before litigation.

Legal Issues at Stake

Several key legal issues are expected to arise as the case moves forward:

1. Claim Construction & Infringement Analysis

The interpretation of the patents’ claims — particularly regarding how customer behavior is tracked, interpreted, and responded to in real time — will be crucial. If CRI’s systems are found to perform the patented steps, even with minor differences, they may still be found to infringe under the doctrine of equivalents.

2. Patent Validity

CRI is likely to challenge the validity of the asserted patents, possibly on the basis of prior art, obviousness, or lack of enablement. These issues are particularly relevant in the fast-moving AI and software space, where technical overlap is common.

3. Willfulness and Enhanced Damages

Alpha Modus may argue that CRI had constructive knowledge of its patents due to their public availability and prior litigation activity. A finding of willful infringement could open the door to enhanced damages under 35 U.S.C. § 284.

4. Venue

The lawsuit was filed in the Eastern District of Texas — long known as a patent plaintiff-friendly jurisdiction. CRI may attempt to move the case to a more neutral or convenient forum, especially if its core business operations are located outside Texas.

Broader Industry Context

This case is one of several recent IP enforcement efforts by Alpha Modus. In 2024 and 2025, the company has initiated legal actions against retailers and tech vendors deploying AI-enhanced customer engagement platforms. The company has positioned itself as a pioneer in AI retail automation, developing solutions that include smart shelving, personalized marketing interfaces, and sensor-based shopper analytics.

The litigation against CRI is part of a broader trend of increased patent litigation in AI and software-driven retail, particularly as traditional retailers race to integrate digital tools in brick-and-mortar settings.

What Comes Next

The court will likely schedule claim construction hearings (Markman hearings) within the next six to nine months. If the case survives any early motions to dismiss or for summary judgment, discovery will focus on:

• The technical specifications of CRI’s products;
• CRI’s internal knowledge of Alpha Modus patents; and
• The economic impact of any alleged infringement.

Settlement discussions are possible but may hinge on Alpha Modus’s licensing posture. The company has stated that it prefers “amicable resolution” but will pursue legal enforcement where necessary.

Conclusion

Alpha Modus v. Creative Realities is a high-profile example of patent enforcement at the cutting edge of AI-powered retail technologies. The outcome could have ripple effects across the retail tech sector, particularly for vendors offering AI-driven customer analytics and dynamic digital signage. As the industry continues to blur the line between physical and digital shopping experiences, expect more litigation — and more scrutiny — over who owns the core intellectual property enabling those innovations.

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Disclaimer: This article is for informational purposes only and does not constitute legal advice