Alpha Modus has filed a patent infringement lawsuit against Canadian smart cart company A2Z Cust2Mate Solutions Corp. The lawsuit targets five patents that cover AI-driven retail technology, including real-time inventory management, personalized promotions, in-cart payment, and AI-based store layout optimization. Alpha Modus argues that Cust2Mate's AI-powered shopping carts infringe on its intellectual property, and this latest move follows several enforcement actions by the company against other retail technology firms.
Alpha Modus, a Nasdaq-listed retail technology firm, has filed a patent infringement lawsuit against Canadian smart cart company A2Z Cust2Mate Solutions Corp. The lawsuit, filed on August 25, 2025, in the U.S. District Court for the Eastern District of Texas, targets five patents that cover AI-driven retail technology. These patents cover real-time inventory management, personalized promotions, in-cart payment, and AI-based store layout optimization [1].
Alpha Modus asserts that Cust2Mate’s AI-powered shopping carts, currently deployed in U.S. supermarkets, infringe on its intellectual property. This is the latest move in a series of enforcement actions by Alpha Modus. Earlier this week, the company sued Cooler Screens Inc. in Illinois federal court, accusing the digital cooler screen provider of infringing its retail display patents [1]. Alpha Modus has also previously taken legal action against Walgreens, Kroger, Wakefern, and Brookshire in similar disputes.
The patents at issue are broad in scope, potentially affecting initiatives by global players such as Amazon, Walmart, Instacart, Carrefour, and Tesco. By targeting Cust2Mate, Alpha Modus has now extended its campaign into the smart cart market, a key area for retailers seeking to streamline checkout and personalize the in-store shopping experience [1].
Alpha Modus argues that its technology portfolio positions it as a gatekeeper in the fast-emerging retail AI sector. The company’s CEO, William Alessi, previously stated that “Alpha Modus’s objective is straightforward: to protect and fairly license our intellectual property.” He added, “We’ve demonstrated through prior settlements, licensing deals, and business collaborations that our portfolio has real enforceability, and licensing is the natural outcome of that” [1].
References:
[1] https://www.investing.com/news/stock-market-news/exclusive-alpha-modus-files-patent-infringement-lawsuit-against-a2z-cust2mate-4212419
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