Alpha Modus is emerging as a rare hybrid: a litigation-capable IP holder, ecosystem‑builder via licensing and reselling partnerships, and AI‑driven innovator at the retail frontier. For investors and licensees, this holistic strategy—anchored in commercial deployment, recurring revenue, and patent enforcement—signals an AI-retail patent play with both defense and offense capabilities. Below is our LFJ Conversation with Bill Alessi, Founder & CEO of Alpha Modus:
Could you elaborate on the details of the recent patent licensing agreement with VSBLTY and how it fits into Alpha Modus's overall strategy? Alpha Modus inked a definitive licensing deal with VSBLTY Groupe on June 12, 2025, leveraging Alpha Modus’s robust AI‑retail patent portfolio to support VSBLTY’s in‑store analytics and digital display offerings in high‑traffic retail environments. This license comes one the heels of a settlement between VSBLT's subsidiary Shelf Nine for a lawsuit filed by ALpha Modus, against Shelf Nine Customer Wakefern Foods. •
Strategic Synergy: Beyond licensing IP, Alpha Modus plans to feature VSBLTY and Shelf Nine as preferred partners, even reselling their AI‑powered retail displays and media solutions.
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Business Model Evolution: This deal cements a shift from purely legal IP enforcement to ecosystem building—turning technology from static patents into dynamic revenue streams and commercial partnerships.
For AI, legal, and investor circles, this exemplifies smart patent monetization—transforming IP assets and defendants in infringement lawsuits into commercial platforms with tangible market traction.
What are the key challenges and opportunities Alpha Modus faces in the current market for in-store digital experiences?- Opportunities:
- Moment‑of‑decision engagement: With advanced AI analytics, retailers can deliver real-time, tailored promotions and planogram adjustments at the point of sale.
- Data‑driven merchandising: AI enhances restocking alerts, product layout insights, and foot‑traffic understanding—critical for smart inventory and offline marketing.
- Challenges:
- Integration complexity: Corner-to-corner deployment requires retailers to adopt compliant camera systems, data pipelines, and staff workflows.
- Privacy regulations: As solutions leverage image/data analytics, Alpha Modus and partners must navigate evolving consumer-privacy and data protection laws.
- Retail adoption costs: Smaller retailers may delay implementing cutting-edge digital media due to capital and cultural constraints.
Can you discuss the specifics of the technology at the center of the patent infringement lawsuit against Cisco Systems? On June 9, 2025, Alpha Modus Ventures filed suit against Cisco in the Western District of Texas, alleging infringement of three U.S. patents (Nos. 11,108,591; 11,310,077; 11,303,473) related to Fibre Channel over Ethernet (FCoE) tech.
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Core tech: The case centers on methods enabling reliable transport of storage-class Fibre Channel traffic over standard Ethernet – critical to Cisco’s Unified Computing System and converged network adapters.
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Strategy: Part of a broader IP‑monetization campaign that includes prior Broadcom litigation —showing intent to enforce foundational networking patents in data-center infrastructure.
How does Alpha Modus leverage AI to enhance targeted marketing and smart inventory management for its clients? Alpha Modus deploys AI-powered analytics at the shelf and point-of-sale to:
- Tailor digital ads by aligning promotions to demographics, store layout, and real-time shopper behavior .
- Optimize inventory by monitoring sales velocity and product interest, triggering restock or product-swapping alerts before stockouts occur .
This data‑driven approach helps brands display relevant promotions, refine merchandising, and reduce lost sales from out‑of‑stock scenarios.
What are Alpha Modus's plans for future innovation and expansion in the data-driven technology space? Alpha Modus shows momentum on several fronts:
- Expanding the IP‑ecosystem: After VSBLTY, the Company plans more licensing deals and reseller relationships in smart‑retail, media, and inventory-tech domains.
- continued legal defense & monetization: Aggressive IP enforcement (e.g., Wakefern, Brookshire, Walgreens, Broadcom, Cisco) signals dedication to monetizing patents while feeding war-chest for future innovation and signing new partnerships as settlements are agreed.
- Operational scale‑up: With Tim Matthews now leading deployment strategy to accelerate rollout of CashX kiosks (June 5, 2025), the Company is building infrastructure to deliver in‑store tech at scale.
- Potential R&D pipeline: Their patent applications (e.g., personalized marketing, planogram management) and recent capital restructuring further empower future in-house product innovation.