Runlayer Sues Rippling Over Alleged Copying of MCP Gateway Product

Runlayer, a startup that provides a secure Model Context Protocol (MCP) gateway for AI models and agents, has filed a lawsuit against Rippling, alleging that the HR software company copied its product after a lengthy evaluation. The lawsuit highlights the risks startups face when selling AI infrastructure to larger tech companies with the engineering capacity to build competing products.

According to the complaint, Rippling conducted a nearly year-long product trial during which Runlayer shared its product roadmap, source code, and other proprietary information. The parties signed a mutual non-disclosure agreement, and Rippling agreed to a product trial contract that explicitly prohibited copying Runlayer's intellectual property or creating derivative works.

After months of collaboration, the two sides failed to agree on pricing, and Runlayer ended the trial. Shortly thereafter, Rippling released its own MCP gateway product, which Runlayer claims is a near-identical copy of its own. The complaint alleges trade secret misappropriation, unfair competition, and breach of contract.

The case serves as a cautionary tale for AI startups, particularly those selling infrastructure to enterprise customers that may have the resources to develop similar technology internally. Runlayer is seeking damages and injunctive relief to prevent further use of its claimed trade secrets.