Exclusive: Alpha Modus files patent infringement lawsuit against A2Z Cust2Mate

Published 27/08/2025, 11:48

Investing.com -- Investing.com can exclusively reveal that Alpha Modus has filed a fresh patent infringement lawsuit, this time targeting Canadian smart cart company A2Z Cust2Mate Solutions Corp. 

The case was filed on August 25, 2025, in the U.S. District Court for the Eastern District of Texas.

The Nasdaq-listed retail technology firm asserts five patents it says form the backbone of modern AI-driven retail technology, covering real-time inventory management, personalised promotions, in-cart payment, and AI-based store layout optimisation. 

The suit alleges that Cust2Mate’s AI-powered shopping carts, currently being deployed in U.S. supermarkets, infringe on Alpha Modus’ intellectual property.

This latest move follows several 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. 

The firm has also previously taken legal action against Walgreens, Kroger, Wakefern and Brookshire in similar disputes.

Alpha Modus argues its technology portfolio positions it as a gatekeeper in the fast-emerging retail AI sector. 

The patents at issue are broad in scope, potentially affecting initiatives by global players such as Amazon, Walmart, Instacart, Carrefour, and Tesco.

By taking aim at Cust2Mate, Alpha Modus has now extended its campaign into the smart cart market, a key area for retailers seeking to streamline checkout and personalise the in-store shopping experience.

When speaking on the Cooler Screens suit, Alpha Modus CEO, William Alessi, previously told Investing.com that “Alpha Modus’s objective is straightforward: to protect and fairly license our intellectual property.” 

“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.”

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