AI infrastructure startup Runlayer has filed a lawsuit against human resources software company Rippling. According to the lawsuit documents seen by TechCrunch, the dispute revolves around an MCP gateway used to connect AI models, agents, and external data tools. Runlayer alleges that after a prolonged trial of its product, Rippling switched to developing a highly similar proprietary solution.
The trial cooperation lasted for nearly a year
In its complaint, Runlayer alleges that Rippling conducted an in-depth evaluation of its products as a potential customer, and the two parties collaborated for nearly a year. During this period, Runlayer not only presented its product roadmap but also released some of its source code and signed a two-way confidentiality agreement and a product trial agreement with Rippling.
According to the complaint, the trial agreement contained common restrictive clauses prohibiting the trial party from copying the relevant intellectual property or developing derivative products based on it. Runlayer stated that the two parties ultimately failed to reach an agreement on price, thus ending the trial.
Runlayer claims the other party has shifted to self-developed technology.
Runlayer stated that shortly after the trial ended, its founder and CEO, Andrew Berman, received a text message from someone claiming to be an "insider at Rippling." The message stated that Rippling was working on a project that was "almost a 1:1 copy of Runlayer."
Based on this claim, Runlayer accused Rippling of misappropriating trade secrets, engaging in unfair competition, and breaching their contract. The article did not disclose whether the case has entered the substantive trial stage.
Rippling denies infringement and will launch products.
Rippling confirmed to TechCrunch that it is indeed launching its own MCP gateway product, but denied Runlayer's allegations of intellectual property abuse. A Rippling spokesperson stated that Runlayer's claims were an attempt to evade competition through litigation, and asserted that its product was developed based on the company's own information.
MCP is an open-source license released by Anthropic in November 2024, primarily used to enable AI models and agents to securely access external data sources and services. Gateway products built around this license typically add enterprise-level features such as access control, security management, and proxy governance.
As MCPs become a crucial foundational component for AI interoperability, competition in the related sector is intensifying. Runlayer launched its product in the middle of last year and has raised a total of $42 million in funding, with investors including Khosla Ventures and Felicis. This lawsuit also reflects a real issue: when AI infrastructure companies sell complex products to large enterprises, they often require extensive and in-depth trials, but customers may also choose to develop their own products after evaluation.
