Patent dispute begins between Rippling and startup Runlayer

Rippling, a provider of HR software, has filed a lawsuit against the small startup Runlayer. According to court documents obtained by TechCrunch, the larger company accuses Runlayer of infringing three of its patents. Techcrunch.com reports .

This countersuit is the latest stage in a mutual dispute. Last month, Runlayer sued Rippling, accusing it of breaching a contract and stealing product ideas. The conflict between the companies began nearly a year ago during the testing of Runlayer’s product.

Conflict emerges from testing and its own solutions

After the parties failed to agree on pricing, the trial period did not become a paid contract. As a result, Rippling built its own MCP server and plans to launch it soon as a competitor to Runlayer’s product. Rippling has typically turned technologies developed for its internal needs into commercial products later on.

Runlayer launched about a year ago. It combines an open-standard MCP gateway, which enables AI agents to work independently with data and software systems, with cybersecurity features. The startup has raised a total of $42 million so far.

Sharp statements in the lawsuits

One of the most striking details in the court documents is that, according to Runlayer representatives, a Rippling employee wrote to company founder Andrew Berman warning him that their employer was copying his product. However, a Rippling spokesperson told TechCrunch that the employee later changed his position.

Rippling representatives, in turn, maintain that Runlayer was immediately notified of its alleged patent infringement after the startup sued the company. Experts say the lawsuit may be being used as leverage to force Runlayer to come to the negotiating table.

Runlayer founder Andrew Berman strongly condemned the situation, commenting: «This is a desperate and retaliatory attempt to conceal the appropriation of our proprietary technology. Our AI product has nothing to do with these patents».