Alpha Modus survives MNTN dismissal bid in CTV patent dispute
A US federal court has denied MNTN Inc.'s attempt to kill Alpha Modus's patent infringement lawsuit at the pleading stage, allowing the case to proceed to claim construction and fact discovery. The order, issued on 21 August 2026 by the US District Court for the Western District of Texas, rejected MNTN's argument that the three asserted patents cover patent-ineligible subject matter under 35 U.S.C. § 101.
The patents at issue, US Patent Nos. 10,360,571, 11,042,890 and 12,026,731, relate to the real-time analysis of consumer behavioural data to deliver personalised marketing and promotional content. Alpha Modus alleges MNTN's Connected TV products, including its MNTN Matched, Verified Visits, Next Gen TV and Performance TV services, infringe those claims.
The ruling
In its 12-page order, the court held that resolving patent eligibility at this early stage would be premature, noting that claim construction and factual discovery could materially inform the analysis. The court applied the presumption of validity that attaches to issued patents and the clear-and-convincing-evidence standard required to prove invalidity, and concluded that the parties' dispute over the breadth of the claims warranted a fuller record before any eligibility determination.
MNTN had characterised the patents as covering nothing more than the abstract idea of collecting and analysing consumer data to serve targeted advertising. Alpha Modus pushed back, arguing that framing ignored the specific technological improvements embodied in the claims. The court sided with Alpha Modus's procedural position, without ruling on the merits of either party's substantive arguments.
William Alessi, chief executive of Alpha Modus Holdings, said the decision reinforces the company's preparedness to litigate against well-resourced opponents. "The size, resources or market position of a defendant do not change our responsibility to protect intellectual property that we believe is being used without authorization," he said.
Market context
The ruling sits within a broader IP enforcement campaign by Alpha Modus that the company says now spans more than 20 infringement actions across retail technology, digital advertising, Connected TV and AI-enabled consumer analytics. That scale places Alpha Modus among a class of patent-assertion entities, or PAEs, that monetise portfolios assembled ahead of a technology category's commercial maturity; the company contends its patents predate many of today's AI-driven performance-marketing tools.
MNTN is a notable defendant by any measure. The NYSE-listed firm reported second-quarter 2026 revenue of $82.5 million, up 21% year on year, with adjusted EBITDA of $21.5 million and roughly $237 million in cash on its balance sheet. MNTN completed its IPO in May 2025 at $16 per share, raising approximately $114.8 million in net proceeds, and its board has since authorised a $100 million share buyback programme. The company has also attracted attention for appointing actor and entrepreneur Ryan Reynolds as its Chief Creative Officer.
The denial of a § 101 motion to dismiss is a procedural win, not a ruling on infringement or validity. Many patent cases that survive early dismissal are ultimately resolved through licensing negotiations rather than trial. For patent defendants in the Connected TV and programmatic advertising space, the Texas ruling serves as a reminder that § 101 challenges at the pleading stage face a high bar when courts determine that claim construction is needed first.
The Western District of Texas remains a popular venue for patent plaintiffs, though its caseload and judicial assignment practices have shifted since the Federal Circuit scrutinised forum-shopping in that district in recent years. Claim construction proceedings will be the next substantive milestone to watch in this case.