Rippling and Runlayer trade lawsuits in escalating AI tech dispute

The conflict centers on Model Context Protocol (MCP) technology, an open standard designed to help AI agents interact with software systems. Runlayer, founded by serial entrepreneur Andrew Berman, bundles this protocol with cybersecurity tools. Rippling spent nearly a year testing Runlayer’s software, but the partnership never matured into a paid agreement. Instead, Rippling developed its own competing MCP server, a move that mirrors its history of commercializing internal tools.

The legal sparring has grown personal. Runlayer alleges that a Rippling employee previously reached out to warn Berman that the tech giant was building a direct copy of his product. Rippling now dismisses that account, instead accusing Runlayer of hypocrisy and claiming the startup’s own lawsuit is a smoke screen to hide its lack of innovation. Berman remains defiant, labeling Rippling’s patent claims a desperate retaliatory tactic meant to bully a smaller competitor. As both sides dig in, the case highlights the growing friction between enterprise customers and the startups they trial, particularly as AI capabilities make in-house development faster and more tempting than third-party procurement.