Runlayer sues Rippling over alleged theft of MCP gateway product

Runlayer, a startup offering a secure Model Context Protocol (MCP) gateway, has filed a lawsuit against HR software company Rippling, alleging theft of its product idea. The complaint, seen by TechCrunch, details an extensive product trial during which Rippling accessed Runlayer's roadmap and source code under a mutual NDA and a trial agreement prohibiting copying or derivative works. Runlayer claims the trial involved nearly a year of engineering collaboration but ended without a pricing agreement. Subsequently, a Rippling insider allegedly texted Runlayer CEO Andrew Berman about an internal project to build a clone of Runlayer. The suit asserts trade secret misappropriation, unfair competition, and breach of contract. Rippling confirmed it is launching its own MCP gateway but denies the allegations, calling Runlayer's claims a panicked effort to avoid competition. Runlayer has retained law firm Sullivan & Cromwell. The case highlights the challenges of selling AI infrastructure to enterprises, which may opt to build in-house. MCP, launched by Anthropic as an open-source protocol in November 2024, is a key building block for AI interoperability. Runlayer launched its product in mid-2025 and raised $42 million from Khosla Ventures and Felicis.