Alpha Modus v. Walgreens: Smart Screen Patent Dispute Ends in Dismissal
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A patent infringement dispute over retail digital smart screen technology reached a confidential resolution in August 2025, when Alpha Modus, Corp. and Walgreen Co. jointly stipulated to dismiss all claims with prejudice before the Eastern District of Texas. Filed in February 2025 and closed within 206 days, Case No. 2:25-cv-00120 centered on two U.S. patents covering intelligent display and commerce-enabling technology allegedly embodied in Cooler Screens digital smart screens deployed across Walgreens retail locations.
The dismissal with prejudice—achieved without a court ruling on the merits—signals a private resolution between the parties, a pattern increasingly common in Eastern District of Texas patent litigation. For patent attorneys, IP professionals, and R&D teams operating in the connected retail display and smart signage sector, this case offers meaningful strategic intelligence about patent assertion trends, litigation venue dynamics, and the commercial stakes surrounding in-store digital advertising technology.
📋 Case Summary
| Case Name | Alpha Modus, Corp. v. Walgreen Co. |
| Case Number | 2:25-cv-00120 (E.D. Tex.) |
| Court | Eastern District of Texas |
| Duration | February 3, 2025 – August 28, 2025 206 days |
| Outcome | Dismissed with Prejudice |
| Patents at Issue | |
| Accused Products | Cooler Screens digital smart screens |
Case Overview
The Parties
⚖️ Plaintiff
Patent assertion entity with an IP portfolio targeting digitally connected commerce and retail technology systems. The company has pursued multiple infringement actions.
🛡️ Defendant
One of the largest pharmacy and retail chains in the United States, adopter of Cooler Screens technology—a third-party platform for IoT-enabled digital displays.
The Patents at Issue
Two granted U.S. patents formed the basis of Alpha Modus’s infringement claims:
- • U.S. Patent No. 11,042,890 B2 — Covers systems and methods related to digital display and automated retail commerce interaction technology.
- • U.S. Patent No. 10,977,672 B2 — Covers related intelligent display and transaction-facilitation methods applicable to connected retail environments.
Both patents fall within the broader landscape of IoT-enabled smart retail systems, a rapidly expanding technology category that intersects digital signage, consumer behavior analytics, and automated purchasing workflows.
The Accused Product
The accused product—Cooler Screens digital smart screens—represents a next-generation retail display platform deployed inside Walgreens stores. These systems replace physical refrigerator doors with sensor-equipped digital screens capable of rendering contextually relevant content and collecting consumer interaction data. The commercial significance of this technology is considerable, as Walgreens has been among Cooler Screens’ most prominent national retail partners.
Legal Representation
Plaintiff counsel: Christopher Edward Hanba, Joshua Gabriel Jones, and Joshua Reed Thane of Haltom & Doan LLP and Prince Lobel Tye LLP — both firms with established patent litigation practices in East Texas and beyond.
Defendant counsel: Andrew William Stinson, Jason C. White, and Nicholas Antonio Restauri of Morgan, Lewis & Bockius LLP and Ramey & Flock, PC — a high-caliber defense team with deep patent litigation experience across technology sectors.
Developing smart retail technology?
Check if your digital signage design might infringe these or related patents.
Litigation Timeline & Procedural History
Alpha Modus filed its complaint in the U.S. District Court for the Eastern District of Texas — a venue that remains one of the most plaintiff-favorable jurisdictions in the country for patent infringement litigation, known for expedited schedules, patent-savvy juries, and historically high plaintiff success rates.
The case proceeded at the first instance (district court) level and was closed before reaching trial, claim construction, or substantive motions on the merits. The 206-day lifecycle from filing to dismissal reflects a resolution achieved in the early-to-middle stages of litigation — prior to the typically resource-intensive Markman hearing and fact discovery phases.
| Milestone | Date |
| Complaint Filed | February 3, 2025 |
| Case Closed | August 28, 2025 |
| Total Duration | 206 days |
No chief judge data was specified in the case record. The procedural vehicle for closure was a Joint Stipulation of Dismissal pursuant to Fed. R. Civ. P. 41(a)(1)(A)(ii), the standard mechanism parties employ when both sides agree to terminate litigation voluntarily, typically following a private settlement.
The Verdict & Legal Analysis
Outcome
On August 28, 2025, the court accepted and acknowledged the parties’ Joint Stipulation of Dismissal, ordering all claims and causes of action dismissed with prejudice. Each party was ordered to bear its own costs, expenses, and attorneys’ fees. All pending relief requests were denied as moot.
Importantly, no damages award, injunction, or finding of infringement or validity was entered by the court. The specific financial terms of any underlying settlement agreement were not disclosed in the public record, which is standard practice for confidential resolution agreements in patent litigation.
Verdict Cause Analysis
The infringement action alleged that Walgreens’ use and deployment of Cooler Screens digital smart screen systems infringed claims within U.S. Patent Nos. 11,042,890 B2 and 10,977,672 B2. Because the case resolved before substantive court rulings, there is no judicial analysis of claim construction, validity, or the scope of the alleged infringement available in the public record.
The election to dismiss with prejudice — as opposed to without prejudice — is legally significant: Alpha Modus is permanently barred from reasserting the same claims against Walgreens based on the same patents. This finality typically reflects either a licensing arrangement, a lump-sum settlement payment, or a covenant not to sue rather than a simple walkaway.
Legal Significance
While no precedential ruling emerged from this proceeding, several elements carry strategic relevance:
- • Venue dynamics: The Eastern District of Texas filing confirms continued plaintiff preference for this jurisdiction in NPE (non-practicing entity) patent assertions, even as post-TC Heartland venue challenges have complicated forum selection in some cases.
- • Early resolution patterns: Resolution within 206 days — before claim construction — suggests that one or both parties calculated that pre-Markman settlement was economically preferable to continued litigation costs, a calculus increasingly common when defendants face East Texas discovery burdens.
- • Smart retail patent landscape: The assertion of continuation-related patents (both applications share close filing genealogy) against a major retail operator signals ongoing portfolio monetization activity in the IoT display and connected commerce technology space.
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⚠️ Freedom to Operate (FTO) Analysis
This case highlights critical IP risks in smart retail technology. Choose your next step:
📋 Understand This Case’s Impact
Learn about the specific risks and implications from this litigation.
- View all related patents in smart retail technology space
- See which companies are most active in digital signage patents
- Understand patent assertion trends in connected commerce
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High Risk Area
IoT-enabled smart retail systems & digital signage
2 Patents in Litigation
Against Cooler Screens technology
Strategic design-around options
Can be evaluated proactively
Industry & Competitive Implications
The Alpha Modus v. Walgreens dispute reflects a broader trend of patent assertion activity targeting the connected retail technology sector — particularly companies deploying IoT-enabled digital signage, smart shelf systems, and in-store consumer interaction platforms.
Cooler Screens, as a technology partner to major retailers, illustrates the downstream infringement exposure that retail operators face when adopting third-party hardware and software platforms. Indemnification provisions in vendor agreements become critical risk-management tools in this environment.
For the digital signage and smart retail industry, this case is one of several ongoing enforcement actions signaling that holders of foundational IoT and display interaction patents are actively monetizing their portfolios against high-profile retail deployments. Companies including pharmacy chains, grocery retailers, and convenience store operators that have adopted or are evaluating similar smart screen technology should treat this case as a relevant risk data point.
The confidential resolution also reflects a licensing market for these patents — suggesting Alpha Modus’s portfolio may carry sufficient commercial validity to warrant continued assertion activity in this sector.
✅ Key Takeaways
For Patent Attorneys & Litigators
Dismissal with prejudice following a joint stipulation in East Texas typically signals a confidential settlement — monitor Alpha Modus’s docket for related filings against other retailers.
Search related case law →The 206-day resolution timeline reflects efficient pre-trial settlement, likely driven by East Texas litigation cost dynamics.
Explore precedents →Both patents (US11,042,890 B2 and US10,977,672 B2) remain active assets — evaluate their claim scope for impact on pending or future matters.
View patent details →For IP Professionals
Retailers deploying third-party IoT display platforms should audit vendor indemnification obligations and conduct FTO reviews of connected commerce patent families.
Start FTO analysis for my product →Alpha Modus’s multi-patent assertion strategy reflects best practices for portfolio monetization — consider how your organization’s defensive portfolio addresses similar claim families.
Explore competitive intelligence →For R&D Leaders
Smart screen and digital signage deployments carry tangible patent infringement risk. Pre-deployment FTO analysis covering IoT interaction and display commerce patent families is essential.
Start FTO analysis for my product →Design-around options for connected retail display systems should be evaluated against both patents’ independent claims.
Try AI patent drafting →FAQ
What patents were involved in Alpha Modus Corp. v. Walgreen Co.?
The case involved U.S. Patent No. 11,042,890 B2 and U.S. Patent No. 10,977,672 B2, both covering digital display and connected retail commerce technology, asserted against Cooler Screens smart screen systems deployed in Walgreens stores.
What was the basis for dismissal in this case?
The parties filed a Joint Stipulation of Dismissal pursuant to Fed. R. Civ. P. 41(a)(1)(A)(ii), with the court ordering all claims dismissed with prejudice. No financial terms were publicly disclosed.
How might this case affect smart retail patent litigation?
It reinforces that IoT-enabled retail display technology remains an active area of patent assertion. Retailers adopting third-party smart screen platforms should conduct patent risk assessments and review vendor indemnification protections.
> 📌 Image Suggestions: (1) Litigation timeline infographic: filing → stipulation → dismissal with key 206-day duration highlighted. (2) Representative figure from U.S. Patent No. 11,042,890 B2 illustrating the claimed digital display system architecture.
> 🔗 Resources: PACER Case Lookup – Case No. 2:25-cv-00120 | USPTO Patent Full-Text – US11042890B2 | USPTO Patent Full-Text – US10977672B2
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