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Investing.com -- Retail-technology firm Alpha Modus has filed a patent infringement lawsuit against H&M Fashion USA, Inc., Investing.com has learned. The company is accusing the global apparel retailer of unlawfully deploying its proprietary “closed-loop” artificial intelligence systems across U.S. stores and digital platforms.
The complaint, filed in the U.S. District Court for the Eastern District of Texas, asserts infringement of five patents, which Alpha Modus says cover core retail-automation technologies, including real-time shopper analysis, product interaction tracking, personalized marketing, inventory responsiveness, and point-of-sale automation.
According to the filing, H&M’s in-store systems, mobile app, RFID-enabled analytics, digital mirrors, and inventory workflows allegedly rely on Alpha Modus’ patented innovations without authorization.
The complaint states that these tools collectively utilize the company’s protected closed-loop retail AI framework, which is designed to interpret live customer behavior and dynamically adjust retail operations.
Alpha Modus describes itself as a developer of advanced AI-driven retail technology, with patents aimed at enabling businesses “to analyze consumer behavior and product interaction in real time” and tailor marketing to “pivotal purchasing decision moments.”
The company notes that it has executed multiple IP licensing agreements outside of litigation, arguing that H&M could have pursued similar lawful channels.
In November, the company said it had entered into a patent license and authorized reseller agreement with an unnamed U.S.-based technology integrator.
Later in the month, Alpha Modus announced a patent infringement lawsuit against Inditex and its Zara brand.