Runlayer sues Rippling over alleged copying of its AI gateway idea

In short: Runlayer says Rippling used Runlayer’s trial access to copy its product idea, and Runlayer is now suing.

What happened

Runlayer, a startup that sells an “MCP gateway,” has filed a lawsuit against Rippling, according to a complaint reviewed by TechCrunch. An MCP gateway is like a guarded door that lets an AI system safely reach outside tools and company data, with rules about what it can access.

Runlayer says Rippling, an HR software company, tested Runlayer’s product as a potential customer for almost a year. Runlayer claims it shared sensitive information during that trial, including product plans and even source code (the instructions that make the software run). The companies signed a mutual non-disclosure agreement, and Runlayer says the trial agreement also barred Rippling from copying or creating similar versions.

The lawsuit says the two companies did not agree on price, so Runlayer ended the trial. Runlayer then alleges a “Rippling insider” warned Runlayer’s CEO Andrew Berman that Rippling was building an internal project that was “almost a 1 to 1 copy” of Runlayer.

Runlayer argues Rippling’s product is based on Runlayer’s protected know-how and claims trade secret misuse, unfair competition, and breach of contract. Rippling confirmed to TechCrunch that it is launching its own MCP gateway, but denied misusing Runlayer’s intellectual property.

Why it matters

This dispute highlights a risk for smaller companies selling specialized AI plumbing to big firms. A long, hands-on trial can help a customer decide, but it can also give that customer enough understanding to build something similar in-house, which can lead to fights over what was learned and what was copied.

Source: TechCrunch AI