MCP startup Runlayer sues Rippling over alleged IP theft
Original: MCP startup Runlayer accuses Rippling of stealing its product idea
Why This Matters
The case highlights IP risks for AI infrastructure startups conducting deep enterprise trials with tech-savvy buyers.
MCP gateway startup Runlayer has filed a lawsuit against HR software company Rippling, alleging trade secret misappropriation and breach of contract after a nearly year-long product trial during which Runlayer shared its roadmap and source code under NDA.
Runlayer, which builds a secure Model Context Protocol (MCP) gateway, filed a lawsuit against Rippling after the two companies failed to reach a pricing agreement following an extensive product evaluation. According to the complaint viewed by TechCrunch, Rippling conducted "nearly a year of intensive engineering collaboration" as a prospective customer, during which Runlayer shared its product roadmap and source code under a mutual NDA and a trial agreement that prohibited copying IP or creating derivative works.
After the trial ended, Runlayer CEO Andrew Berman reportedly received a text from a "Rippling insider" warning him of an internal project to build "almost a 1 to 1 copy of Runlayer." Runlayer alleges trade secret misappropriation, unfair competition, and breach of contract. Rippling confirmed it is launching its own MCP gateway but denied all allegations, stating: "Runlayer's panicked effort to avoid competition by fabricating claims is not an effective way to deal with its business failures. Rippling is launching a superior product using only our proprietary information." Runlayer has retained law firm Sullivan & Cromwell. Anthropic originally launched MCP as an open source protocol in November 2024.