MCP startup Runlayer accuses Rippling of stealing its product idea
Article excerpt
Runlayer, a startup that offers a secure Model Context Protocol gateway - a standard for letting AI models and agents securely pull in outside data and tools - has filed a lawsuit against HR software startup Rippling, according to the complaint seen by TechCrunch. The lawsuit is a cautionary tale for anyone selling AI infrastructure to enterprise customers, especially to other tech companies, that increasingly have the engineering muscle to just build the thing themselves. In the suit, Runlayer describes an extensive product trial conducted by Rippling as a prospective customer, during which the MCP startup shared everything from its product roadmap to its actual source code. The parties signed a mutual non-disclosure agreement and Rippling signed a product trial agreement with a clause that forbade it from copying Runlayer’s intellectual property or making derivative works, which is standard boilerplate in enterprise software trials. Runlayer says in the complaint that Rippling’s evaluation involved “nearly a year of intensive engineering collaboration.” But in the end, the two could not agree on a price, so Runlayer ended the product trial. Shortly after that, Runlayer alleges that a “Rippling insider” texted Runlayer founder and CEO Andrew Berman to inform him of “a project internally to build essentially a clone o[f] Runlayer … it’s almost a 1 to 1 copy of Runlayer.”...
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Rippling has confirmed to TechCrunch that it is indeed launching its own MCP gateway, though a spokesperson denies Runlayer’s allegations about misusing its IP.
