Business11 August, 20262 min read
Rippling Sues AI Startup Runlayer In Delaware Over Data Patent Infringement
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Rippling filed a Delaware patent infringement suit accusing Runlayer of infringing three data patents. Runlayer had previously sued Rippling in Manhattan, accusing breach of contract and trade-secret theft.
Rippling vs Runlayer
HR software firm Rippling sued AI startup Runlayer in Delaware federal court on Monday, alleging Runlayer infringes three of Rippling’s data-related patents tied to “data organization and automation.” The dispute follows a Runlayer complaint filed in Manhattan last month accusing Rippling of stealing its trade secrets to “clone” its platform during a product trial period. Reuters said the companies’ relationship began when Rippling entered into a license to try out Runlayer’s software that monitors and controls how AI agents access enterprise software systems.
TechCrunch reported that Rippling spent nearly a year testing Runlayer’s MCP product without agreeing on a price, and that the trial never turned into a paid contract. After the trial, TechCrunch said Rippling built its own MCP server and planned to offer it as a competing product.
Duelling accusations
Runlayer CEO Andrew Berman called Rippling’s complaint “a desperate, retaliatory ploy to distract from the fact Rippling misappropriated our proprietary technology,” framing the countersuit as a diversion from Runlayer’s claims. Rippling’s spokesperson responded that “It takes a certain boldness to accuse a competitor of violating intellectual property laws while infringing on that competitor’s inventions,” and said Runlayer had done exactly that. TechCrunch described Runlayer’s allegation that a Rippling employee reached out to Berman to warn him that his employer was building a “copy” of Runlayer’s product, and said Rippling’s spokesperson told TechCrunch the employee revised that view.
In the same TechCrunch account, Rippling said it informed Runlayer of the patents it believed Runlayer had infringed soon after Runlayer filed its lawsuit. The New York Post added that Runlayer alleged Rippling refused to pay “a market rate” for its platform while “secretly building” a copycat using Runlayer’s confidential information.
What’s at stake
Reuters said Rippling asked the court for an unspecified amount of monetary damages and a court order blocking Runlayer from infringing its patents. TechCrunch said the case will be decided by the courts unless the parties settle, with both companies preparing to argue their versions of what happened during the MCP trial. TechCrunch reported that Runlayer launched its product about a year ago and bundles an MCP gateway with cybersecurity features like threat detection, while MCP is described as an open standard that allows AI agents to connect with data and software systems.
The Whalesbook account added that Rippling began testing Runlayer’s MCP gateway product about a year ago and later announced plans to launch its own competing MCP server. Whalesbook also said the dispute centers on the Model Context Protocol (MCP), an open standard designed to help AI agents interact with data systems, and that the courts will evaluate the claims from both sides.