Runlayer Accuses Rippling of Copying AI Security Tool Amid Growing MCP Market Battle

A small AI startup called Runlayer has filed a lawsuit claiming that HR software company Rippling stole its product idea for a secure gateway.

The dispute centers on a nearly year-long product trial where Runlayer shared details under strict legal agreements.

Background on the MCP Protocol and Startup Origins

Model Context Protocol or MCP is an open standard started by Anthropic back in 2024 to help AI models safely connect with outside data and tools.

Runlayer launched its version of an MCP gateway in 2025 and raised 42 million dollars from big investors to build security features for businesses.

Many companies now want these gateways because AI agents need controlled access without exposing sensitive information.

Why This Lawsuit Highlights Risks for AI Innovators

Runlayer alleges that Rippling used the shared information to build its own version after the trial ended over price disagreements.

Rippling denies any wrongdoing and says it created the product using only its own ideas while confirming plans to launch an MCP gateway soon.

Such cases show how tech firms often try products from startups but may decide to build internally instead of buying.

This situation could slow down innovation if smaller companies fear sharing details even with NDAs in place.

For everyday people it means better or worse protection for personal data when companies use AI tools at work.

Looking ahead more legal fights may arise as the MCP space gets crowded with competitors racing to offer secure AI connections.