Runlayer, a startup that provides a secure gateway for the Model Context Protocol (MCP), has filed a lawsuit against HR‑tech firm Rippling, alleging that the latter copied its technology after an extended evaluation period. According to the complaint, Rippling engaged in nearly a year of collaborative testing, during which Runlayer shared detailed roadmaps, source code, and technical specifications under a mutual NDA and a trial agreement that prohibited derivative work. When negotiations over pricing broke down, Runlayer claims a Rippling insider tipped off its CEO about an internal project to build a near‑identical MCP gateway, which it says constitutes trade‑secret misappropriation and breach of contract.
The Model Context Protocol is designed to let AI models and agents safely access external data sources and tools without exposing sensitive information. Runlayer’s implementation acts as a controlled broker, handling authentication, data routing, and policy enforcement so that developers can plug AI agents into enterprise systems with confidence. Rippling has confirmed it is launching its own MCP gateway, insisting the product was built solely from its own proprietary knowledge and dismissing the allegations as an attempt to stave off competition.
For developers and researchers, the dispute highlights the growing tension between specialized AI infrastructure providers and large tech firms that have the engineering capacity to replicate niche services. It underscores the importance of robust IP protections when sharing early‑stage technology with potential enterprise customers, while also signaling that MCP‑based connectivity is becoming a strategic layer in the AI stack that multiple players are eager to own.