Runlayer, a startup providing a secure Model Context Protocol (MCP) gateway, has filed a lawsuit against HR software company Rippling. The lawsuit, seen by TechCrunch, alleges that Rippling developed its own MCP gateway product after evaluating Runlayer's offering as a prospective customer.
According to Runlayer's complaint, the product trial involved nearly a year of engineering collaboration, during which Runlayer shared its product roadmap and source code under a mutual non-disclosure agreement and a product trial agreement. Runlayer claims this agreement included a clause prohibiting Rippling from copying its intellectual property or creating derivative works.
Runlayer ended the trial after the companies could not agree on a price. Subsequently, Runlayer alleges that a Rippling insider informed its CEO, Andrew Berman, of an internal project to build a product described as "almost a 1 to 1 copy of Runlayer."
Rippling has confirmed to TechCrunch that it is launching its own MCP gateway but denies Runlayer's allegations of misusing its intellectual property. A Rippling spokesperson stated, "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 for connecting AI tools to business data using only our proprietary information – we have every reason to win in this market."