On July 28, 2026, Runlayer filed a lawsuit against Rippling in New York, marking the first major intellectual property battle within the Model Context Protocol (MCP) sphere. This move reveals how MCP is evolving from a collaborative project into a fiercely competitive commercial space.
The conflict centers on the MCP gateway, a key control system managing enterprise tasks like authentication and access control between AI agents and MCP servers. Runlayer claims Rippling stole trade secrets after nearly a year of product trials under a strict NDA that forbade copying or derivative work.
The lawsuit details that Runlayer shared its roadmap, source code, and gateway deployment design with Rippling. Negotiations for a long-term deal fell apart, prompting Runlayer to cut off services on June 12. That same day, a Rippling insider allegedly admitted plans to build a near-identical clone, and by July 1, Runlayer received a screenshot showing Rippling’s competing product.
Runlayer's choice of Sullivan & Cromwell and former USPTO Director Andrei Iancu to lead the case signals this is about more than a contract. The company wants a court order to stop Rippling from selling the contested gateway tech, setting a precedent for intellectual property rights in emerging AI infrastructure.
This material is for informational purposes only and does not constitute financial advice.
