Runlayer, a startup providing a secure Model Context Protocol (MCP) gateway for AI systems, has filed a lawsuit accusing HR software firm Rippling of stealing its product idea and trade secrets after an extended sales trial. Runlayer alleges that during nearly a year of "intensive engineering collaboration," it shared its product roadmap and source code with Rippling under a non-disclosure agreement, only for Rippling to later build what it describes as a near-identical clone once price negotiations broke down. The case highlights the risks faced by smaller AI infrastructure vendors when pitching to larger, well-resourced tech companies capable of building similar products in-house.

According to the complaint, Runlayer's founder and chief executive, Andrew Berman, was reportedly tipped off by a "Rippling insider" about an internal project to replicate the startup's product almost exactly. Runlayer is pursuing claims of trade secret misappropriation, unfair competition and breach of contract, and has hired law firm Sullivan & Cromwell. Rippling has confirmed it is launching its own MCP gateway but denies misusing Runlayer's intellectual property, calling the lawsuit an attempt to deflect from business struggles. Runlayer, which launched in mid-2025 and has raised $42 million from investors including Khosla Ventures and Felicis, operates in an increasingly crowded market for MCP gateway tools built around Anthropic's open-source protocol, launched in November 2024.