Alpha Modus takes legal action against Broadcom for patent infringement

Published 01/05/2025, 13:58
Alpha Modus takes legal action against Broadcom for patent infringement

CORNELIUS, N.C. - Alpha Modus Holdings, Inc. (NASDAQ:AMOD), a micro-cap technology company valued at $15.1 million specializing in AI-driven retail technology, has initiated a patent infringement lawsuit against Broadcom Inc. through its subsidiary, Alpha Modus Ventures, LLC. According to InvestingPro data, the company’s stock has fallen nearly 90% over the past year, though it maintains a relatively modest P/E ratio of 10.45. The lawsuit, which began last week in the United States Western District Texas Court, alleges that Broadcom has infringed on three of Alpha Modus’s patents related to Fibre Channel data transportation over Ethernet.

The patents in question, U.S. Patent Nos. 11,108,591; 11,303,473; and 11,310,077, are considered by Alpha Modus to be foundational technologies in the field. In a strategic move to reinforce its litigation efforts, Alpha Modus Holdings has entered into a patent monetization and funding agreement with Alpha Modus Ventures, LLC, which is controlled by Alpha Modus Holdings’ CEO, William Alessi. This move comes as the company faces financial challenges, with InvestingPro analysis showing short-term obligations exceeding liquid assets and a concerning current ratio of 0.23.

"This transaction underscores our commitment to unlocking value through aggressive IP enforcement and strategic funding structures," Alessi stated, emphasizing the potential transformative nature of the case against Broadcom in both financial and strategic terms.

Furthermore, an option agreement has been executed that could potentially allow Alpha Modus Holdings to acquire 100% of Alpha Modus Ventures, consolidating patent ownership and strengthening the company’s position in ongoing and future enforcement actions. The execution of this option is contingent upon shareholder approval and other conditions, with no guarantee of its exercise.

Alpha Modus Holdings’ approach reflects a broader strategy to assert and monetize its growing intellectual property portfolio, which may lead to additional lawsuits and partnerships. The company’s actions demonstrate its commitment to identifying valuable intellectual property and translating litigation into shareholder value.

This legal action is part of Alpha Modus’s larger strategic roadmap, which includes enhancing consumer engagement and optimizing in-store experiences through its AI solutions for the retail industry. The information provided is based on a press release statement from Alpha Modus Holdings, Inc. For deeper insights into Alpha Modus’s financial health and growth prospects, including 8 additional key ProTips and comprehensive valuation metrics, investors can access detailed analysis through InvestingPro.

In other recent news, Alpha Modus Holdings, Inc. has made several notable announcements. The company has initiated a patent infringement lawsuit against OptiSigns, Inc., alleging unauthorized use of multiple Alpha Modus patents related to advanced retail marketing technologies. This legal action aligns with Alpha Modus’s ongoing strategy to protect its intellectual property, following a recent settlement with Shelf Nine LLC and discussions for a strategic partnership with VSBLTY Groupe Technologies Corp. Additionally, Alpha Modus has entered into a strategic reseller agreement with GlobeTopper, granting exclusive rights to sell GlobeTopper’s digital transaction solutions through its AI-powered kiosks. The partnership aims to enhance the capabilities of Alpha Modus’s kiosks by integrating services such as prepaid cards and cryptocurrency. However, the company faces a challenge as it received a notice from Nasdaq for not meeting the minimum market value requirement, with a 180-day period to regain compliance. Meanwhile, Alpha Modus has also filed a patent lawsuit against Walgreens Co. over alleged infringement of its AI-driven retail technology. These developments reflect Alpha Modus’s commitment to innovation and protecting its technological advancements in the retail sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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