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Alpha Modus Files Lawsuit Against MNTN for AI Patent Infringement Alpha Modus Holdings, Inc., a prominent innovator in AI-driven retail and fintech technology, has initiated a patent infringement lawsuit against MNTN, Inc., a connected TV advertising company. The complaint was filed in the U.S. District Court for the Western District of Texas, alleging that MNTN’s connected TV advertising solutions infringe upon three key patents held by Alpha Modus related to AI-driven consumer engagement. Details of the Alleged Infringement According to the filing by Alpha Modus Corp., a subsidiary of Alpha Modus Holdings, Inc. (Nasdaq: AMOD), the lawsuit specifically targets MNTN for alleged infringement of U.S. Patent No. 10,360,571, U.S. Patent No. 11,042,890, and U.S. Patent No. 12,026,731. These patents are described as foundational to modernizing retail and advertising engagement through advanced consumer monitoring and real-time interactions. The technologies covered include methods for real-time consumer behavior analysis, systems for in-store customer assistance, and personalized marketing tied to consumer interactions and location tracking. Alpha Modus asserts that MNTN’s offerings, including products such as MNTN Matched, Verified Visits, and Next Gen TV, leverage demographic, sentiment, and behavioral data in ways that directly overlap with its intellectual property. The complaint alleges that MNTN's accused products "significantly contributed to the efficiency and profitability of CTV advertising utilized by Defendant's customers," resulting in "lost business opportunities, revenue, and diminution of the value of its patented technology" for Alpha Modus. The lawsuit seeks substantial damages, injunctive relief to prevent further alleged infringement, and judicial recognition of the validity and enforceability of Alpha Modus’s patents. Market Implications and Intellectual Property Landscape This legal action introduces a layer of uncertainty for MNTN, which currently holds a market capitalization of approximately $1.44 billion and primarily derives revenue from its Internet Software & Services segment, generating $259.91 million. While analysts have projected a 121.8% per annum earnings growth and a potential 66.7% stock price increase for MNTN, the lawsuit could lead to significant financial repercussions, including potential licensing fees or mandated changes to its technology should a court find in favor of Alpha Modus. For Alpha Modus, a successful outcome would not only validate its intellectual property but could also enhance its market position within the $60+ billion retail media and self-service kiosk markets. The case underscores the increasing legal scrutiny over AI-related patents and sets a precedent for the monetization and protection of AI innovations across the advertising and retail sectors. The broader market may experience heightened caution as companies evaluate their own intellectual property portfolios and potential vulnerabilities in the evolving AI landscape. Broader Context and Industry Trends This lawsuit is not an isolated incident for Alpha Modus. The company has a history of similar patent enforcement actions against other major entities, including Kroger, Creative Realities, A2Z Cust2Mate Solutions, Cooler Screens, and Brookshire Grocery. These actions consistently reinforce Alpha Modus’s strategic commitment to protecting and monetizing its core technologies that are shaping the retail media and self-service kiosk markets. The growing number of patent disputes in the artificial intelligence sector reflects the intense competition and significant investments being made in developing proprietary AI solutions. This trend is further contextualized by broader regulatory shifts impacting the tech industry, such as recent antitrust rulings against major players like Google, which aim to reshape market dynamics and foster competitive innovation, particularly around AI tools. Executive Commentary and Future Outlook William Alessi, CEO of Alpha Modus, commented on the company's litigation strategy, emphasizing a balance between enforcement and potential collaboration: > "Every infringement, and every infringer, is also a potential ally. We file these lawsuits to protect our shareholders and the integrity of our technology. But as we've consistently demonstrated, our preference is always to resolve matters quickly and amicably. We welcome the opportunity to turn adversaries into allies." Alessi further elaborated on the pervasive nature of Alpha Modus’s innovations: > "Our patented AI technology is becoming ubiquitous in retail and advertising. That means more companies—whether in retail, fintech, or connected TV—will inevitably intersect with our portfolio. We are fully prepared to defend our intellectual property while remaining open to collaborations that accelerate growth and innovation." Looking ahead, market participants will closely monitor the proceedings in the U.S. District Court for the Western District of Texas. Key factors to watch include the potential for settlement negotiations between the parties, the direct impact on MNTN’s operational strategies and stock valuation, and how this case may influence the development of legal frameworks governing AI patent protection within the rapidly expanding connected TV advertising and retail media sectors. The outcome could provide critical insights into the future enforceability and value of AI intellectual property.
Alpha Modus Initiates Patent Infringement Action Against MNTN in Texas Court Alpha Modus Holdings, Inc. (Nasdaq: AMOD), a developer of AI-driven retail and fintech technology, announced on September 12, 2025, the filing of a patent infringement lawsuit against MNTN, Inc., a connected TV advertising company, in the U.S. District Court for the Western District of Texas. The lawsuit centers on allegations that MNTN's connected TV advertising solutions infringe upon three of Alpha Modus's patents related to AI-driven consumer engagement technologies. Details of the Allegations and Asserted Patents The complaint specifically targets MNTN's connected TV advertising offerings, including products such as MNTN Matched, Verified Visits, and Next Gen TV. Alpha Modus contends that these solutions infringe on its intellectual property, which includes U.S. Patent No. 10,360,571, covering methods for monitoring and analyzing consumer behavior in real time for targeted engagement; U.S. Patent No. 11,042,890, pertaining to systems that enhance in-store customer assistance through advanced monitoring and sentiment analysis; and U.S. Patent No. 12,026,731, related to personalized marketing and advertising tied to real-time consumer interactions and location tracking. Alpha Modus asserts that these patents are foundational to transforming how retailers and advertisers engage consumers at the point of sale. The lawsuit seeks unspecified damages, injunctive relief to halt alleged infringement, and judicial recognition of the patents’ validity and enforceability. Market Reaction and Financial Context The immediate market sentiment regarding this lawsuit remains uncertain, with potential for increased volatility for both MNTN and Alpha Modus. MNTN, Inc., a privately held company with a reported market capitalization of approximately $1.44 billion as of September 17, 2025, has demonstrated robust financial performance in its Internet Software & Services segment. Over the last 12 months, the company generated $259.91 million in revenue, though it reported losses of -$55.24 million during the same period. Its second-quarter 2025 results highlighted strong growth, with total revenue increasing 25% year-over-year to $68.5 million, driven by a 35% rise in Performance TV revenue to $67.8 million. MNTN's gross margin significantly improved to 77% from 70% in Q2 2024, and adjusted EBITDA grew 92% year-over-year to $14.5 million. With a net cash position of $175.16 million and no reported debt, MNTN possesses a substantial financial buffer to address potential legal costs or damages. The company is projected to achieve profitability within the next three years, with an anticipated annual earnings growth of 121.8%. Alpha Modus Holdings, Inc. (Nasdaq: AMOD), a publicly traded entity with a market capitalization of $47 million, operates with moderate debt levels but faces challenges concerning weak gross profit margins and short-term liquidity. For Alpha Modus, the lawsuit represents a strategic effort to monetize its intellectual property and solidify its market position within AI-driven consumer engagement technologies. The outcome could significantly impact MNTN's operational strategy, potentially requiring alterations to its connected TV advertising solutions if an injunction is granted. Broader Context and Industry Implications This legal action by Alpha Modus is part of a broader "Enforcement as a Growth Strategy," which has seen the company pursue similar patent infringement actions against other prominent retailers and advertising networks, including Kroger, Creative Realities, and Cooler Screens. This strategy positions Alpha Modus’s patent portfolio as a crucial asset within the rapidly expanding $60+ billion retail media and self-service kiosk markets. The choice of the Western District of Texas for litigation is notable, as the court is historically perceived as favorable to patent holders, potentially offering procedural advantages that can increase settlement pressure. More broadly, the lawsuit underscores the intensifying legal landscape surrounding AI-driven intellectual property. Across the technology sector, firms are increasingly facing litigation over the use of AI, from copyright infringement in training generative AI models to unfair competition claims related to AI-generated content. This case highlights the growing importance of protecting and enforcing IP rights in the AI space, particularly within the dynamic sectors of retail media and connected TV advertising. It signals a potential increase in legal scrutiny for companies developing and deploying AI-powered solutions. Expert Commentary William Alessi, CEO of Alpha Modus, commented on the company's approach to intellectual property enforcement, stating, > "Every infringement, and every infringer, is also a potential ally." He emphasized the company’s commitment to protecting its shareholders and the integrity of its technology, while also expressing openness to collaborations that could foster growth and innovation. Alessi further noted that Alpha Modus's patented AI technology is becoming "ubiquitous" in the retail and advertising sectors, making it inevitable for other companies to intersect with their intellectual property. Outlook: The Future of AI IP Enforcement The resolution of the Alpha Modus v. MNTN lawsuit will be closely watched for its specific financial outcomes and its potential to set precedents for intellectual property enforcement in the burgeoning AI-driven advertising and retail media sectors. Key factors to monitor include the court's decisions on patent validity and infringement, any potential settlement negotiations, and the operational adjustments MNTN may undertake. The increasing frequency of such lawsuits suggests a critical phase for the AI industry, where the boundaries of innovation are being tested against the imperative of intellectual property protection. The outcome of this and similar cases will likely influence future development strategies, licensing agreements, and competitive dynamics among companies leveraging AI for consumer engagement and advertising. Investors and industry participants will be keen to observe how these legal battles shape the framework for AI innovation and monetization moving forward.
Mr. Adam Dooley is the Chairman of the Board of MNTN Inc, joining the firm since 2021.
The current price of MNTN is $20.08, it has decreased 0% in the last trading day.
MNTN Inc belongs to Media industry and the sector is Communication Services
MNTN Inc's current market cap is $1.4B
According to wall street analysts, 11 analysts have made analyst ratings for MNTN Inc, including 3 strong buy, 9 buy, 3 hold, 0 sell, and 3 strong sell