Startup MCP Runlayer Sues Rippling for Stealing Its Product Idea

Runlayer, a startup providing a secure Model Context Protocol (MCP) gateway for AI models and agents, has filed a lawsuit against HR software company Rippling, according to a complaint seen by TechCrunch. Runlayer alleges that during an extensive product trial, Rippling copied its intellectual property, including source code and product roadmap, despite signing agreements prohibiting such use. After nearly a year of collaboration, Runlayer ended the trial due to pricing disagreements. Runlayer claims a Rippling insider informed its CEO that Rippling was building a clone of Runlayer. Runlayer asserts trade secret misappropriation, unfair competition, and breach of contract. Rippling confirmed it is launching its own MCP gateway but denies misusing Runlayer's IP, stating it uses only proprietary information. Runlayer has retained law firm Sullivan & Cromwell. The lawsuit highlights the challenges of selling complex AI infrastructure to enterprises, especially other tech companies that may choose to build in-house. MCP gateways are becoming increasingly competitive since Anthropic launched MCP as an open-source protocol in November 2024.