Alpha Modus, a company that develops technologies to convert in-store consumer behavior into actionable, real-time commercial outcomes, has framed its intellectual property holdings as a core asset amid growing demand for deployable AI tools in physical retail. The firm has seen its share price decline over the past 12 months, and management is increasingly pointing to patent-backed systems as a differentiator as retailers modernize their on-site analytics.
In an exclusive interview, CEO William Alessi said retailers are looking for defensible, scalable infrastructure to support more sophisticated data collection and engagement capabilities within brick-and-mortar locations. The company, which began by deploying compact in-store cameras to capture shopper metadata for real-time behavioral insights, made a deliberate strategic choice to emphasize intellectual property protection rather than pursuing the fastest possible commercial expansion.
Alessi described the competitive backdrop that informed that decision: Alpha Modus was “competing directly with much larger, better-capitalized incumbents who were moving quickly to commercialize similar capabilities.” Management believed the firm already possessed early patents that demonstrated “the novelty and breadth” of its methods, prompting a strategic pause to broaden and fortify its IP holdings before a wider market push.
That shift, Alessi said, repositioned Alpha Modus from a participant into a holder of foundational intellectual property that could underpin in-store analytics as the market matures. The company’s patent set is intended to protect core workflows for interpreting in-store behavior: identifying who is in a location, tracking which products they interact with, measuring responses, and determining when interventions might be commercially effective.
“Retailers today are not lacking data—they are lacking patent-backed, deployable systems,” Alessi said, arguing that as AI tools become more prevalent in physical retail environments, infrastructure covered by patents will be important for both confidence and long-term scalability. He viewed generative AI as complementary to Alpha Modus’s protections: AI may refine how insights are produced, but the orchestration layer that collects and acts on real-world behavior remains central. As he put it, “AI may improve how insights are generated,” but “the underlying orchestration remains foundational.”
Alpha Modus is actively enforcing aspects of that portfolio. The company has several ongoing complaints involving major retail names, including 7-Eleven, Lowe’s, Kroger and Zara USA. Alessi declined to provide specific timelines for potential resolutions but said recent actions tend to validate the strength of the patents and “tend to accelerate dialogue” with counterparties. He emphasized that enforcement is part of a commercial approach intended to turn innovation into market-based licensing outcomes rather than litigation for its own sake.
“We see enforcement as the beginning of a business conversation,” Alessi said, noting that enforcement actions sometimes lead to broader discussions on licensing, deployment or collaboration. In support of that approach, the company disclosed that in November it entered a patent license and authorized reseller agreement with an unnamed U.S.-based technology integrator. In a separate development last month, Alpha Modus resolved its patent litigation against Mood Media, characterizing the outcome as aligned with its “ongoing strategy of enforcing its intellectual property portfolio to achieve efficient, outcome-focused results.”
Management reports that the combination of enforcement and resolved cases has generated “increased inbound interest” from retailers seeking clarity about technologies they rely on. Alessi said many companies prefer proactive negotiated arrangements to reactive disputes: “Many companies prefer proactive negotiated arrangements over reactive disputes. Our recent actions have reinforced that Alpha Modus is both approachable and resolute.”
Alpha Modus’s emphasis on patents sits against the backdrop of broader industry debates about data collection, analytics and AI in physical retail. The company’s chosen path—prioritizing IP strength and a licensing-first enforcement posture—reflects a strategic bet that clear, patent-backed orchestration layers will be required as store-based AI becomes more embedded in retailer operations.
Key factual points in this reporting:
- Alpha Modus initially focused on small in-store cameras to capture shopper metadata for real-time behavioral insights.
- Management paused aggressive commercialization to expand and fortify its patent portfolio, believing the patents demonstrated novelty and breadth.
- The company has active complaints involving 7-Eleven, Lowe’s, Kroger and Zara USA, and recently resolved litigation with Mood Media while signing a patent license and reseller agreement with an unnamed U.S. technology integrator.