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MCP startup Runlayer accuses Rippling of stealing its product idea

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Runlayer, a startup that offers a secure Model Context Protocol gateway — a standard for letting AI models and agents securely pull in outside data and tools — has filed a lawsuit against HR software startup Rippling, according to the complaint seen by TechCrunch.

The lawsuit is a cautionary tale for anyone selling AI infrastructure to enterprise customers, especially to other tech companies, that increasingly have the engineering muscle to just build the thing themselves.

In the suit, Runlayer describes an extensive product trial conducted by Rippling as a prospective customer, during which the MCP startup shared everything from its product roadmap to its actual source code. The parties signed a mutual non-disclosure agreement and Rippling signed a product trial agreement with a clause that forbade it from copying Runlayer’s intellectual property or making derivative works, which is standard boilerplate in enterprise software trials.

Runlayer says in the complaint that Rippling’s evaluation involved “nearly a year of intensive engineering collaboration.” But in the end, the two could not agree on a price, so Runlayer ended the product trial.

Shortly after that, Runlayer alleges that a “Rippling insider” texted Runlayer founder and CEO Andrew Berman to inform him of “a project internally to build essentially a clone o[f] Runlayer … it’s almost a 1 to 1 copy of Runlayer.”

Runlayer claims in the suit that Rippling’s product must have been based on the startup’s intellectual property and therefore constitutes trade secret misappropriation, unfair competition and breach of contract.

Rippling has confirmed to TechCrunch that it is indeed launching its own MCP gateway, though a spokesperson denies Runlayer’s allegations about misusing its IP.

“Runlayer’s panicked effort to avoid competition by fabricating claims is not an effective way to deal with its business failures. Rippling is launching a superior product for connecting AI tools to business data using only our proprietary information – we have every reason to win in this market,” a Rippling spokespeson tells TechCrunch.

Runlayer has retained white-shoe law firm Sullivan & Cromwell. That doesn’t mean Runlayer will, or even should, win this suit, but the same way a marquee VC lends a startup some credibility, a marquee law firm lends a lawsuit some credibility, at least optically.

The more interesting part about this suit is really the inside peek it provides at the trials and tribulations of selling complex AI infrastructure into the enterprise, particularly to other tech companies. Enterprise sales notoriously take a long time to close, often because they hinge on this kind of deep, hands-on trial.

MCP gateways in particular are getting crowded. Anthropic launched MCP as an open-source protocol in November 2024. It’s now one of the basic building blocks of AI interoperability, giving models and agents a secure way to access external data sources and services. MCP gateway products add control, security and other features, especially for managing agents, and the field has grown considerably more competitive since Runlayer launched its product in the middle of last year and raised a total of $42 million, including from Khosla Ventures and Felicis.

Even after an intense trial, an enterprise may simply opt to build the tool in-house. Both sides are stuck between a rock and a hard place.

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Leadway Backs ISSP to Deepen Insurance Penetration, Consumer Trust

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Leadway Assurance Limited has launch Insurance Sector Strengthening Programme (ISSP), a five-year initiative.

The programme, held in Abuja, was designed to address key challenges limiting insurance growth in Nigeria, including low public awareness, weak consumer confidence, inadequate distribution, capacity constraints, and limited insurance adoption among women, young people, and Micro, Small and Medium Enterprises (MSMEs).

Speaking at the launch in Abuja, the Commissioner for Insurance and Chief Executive of NAICOM, Mr Olusegun Ayo Omosehin, said the programme would provide a coordinated framework to translate industry reforms into measurable improvements in insurance coverage and consumer confidence.

 “The ISSP initiative will focus on six key areas: advocacy and policy, awareness and education, capacity building, gender inclusion, youth engagement, and MSME and value-chain development. Efforts to expand insurance coverage must be supported by strong underwriting standards, good corporate governance, effective claims administration, transparency and adequate policyholder protection. Regulation must serve as both a shield for policyholders and a compass for responsible market development.”

Also, the Head, Commercial Division, Leadway Assurance, Mr. Olawale Alao, described the ISSP as a timely intervention capable of tackling both the structural and perception-related challenges confronting the industry.
Alao said the programme offered stakeholders a structured platform to identify market gaps and develop practical solutions to improve public understanding and participation.

He said its success would largely depend on changing the perception of insurance from an optional financial product to an essential part of everyday life and financial planning.

“Over the next five years, we believe this initiative can deepen awareness, particularly among young Nigerians, build stronger trust in the sector and encourage more people to see insurance as an essential tool for protection and financial resilience,” he said.

”Increasing the number of policyholders alone would not be sufficient, stressing that Nigerians must also understand the value of insurance and be able to incorporate it into their everyday financial decisions. He added that stronger awareness and confidence in insurance would be particularly important among younger Nigerians, who represent a major part of the country’s future consumer and investment base.Also speaking on this initiative, Team Lead of the ISSP Design Team and Managing Director of EMDI Capacity Development Ltd., Bukola Ifemade, called for urgent and coordinated action to unlock the trillion-naira potential of Nigeria’s insurance sector.

“This flag-off marks the beginning of this mobilisation. Success will require strong partnerships and a sustained commitment to innovation and inclusion,” he said.

The ISSP executive summary estimates that only about five per cent of Nigeria’s population currently has insurance coverage, while 78 per cent lack basic insurance knowledge. Women account for 32 per cent of policyholders, people aged 18 to 35 make up less than 20 per cent of the industry’s customer base, and insurance penetration among MSMEs is estimated at eight per cent. To address these gaps, the programme will target five million members of the general population, two million women entrepreneurs and decision-makers, 1.5 million young Nigerians and 250,000 MSMEs across Nigeria.

For Leadway, supporting the ISSP aligns with its commitment to building a formidable insurance industry by enhancing awareness, building consumer confidence, and making financial protection more accessible to individuals, families, and businesses.

About Leadway Assurance

Leadway Assurance is one of Nigeria’s foremost non-banking financial services groups, offering diversified solutions across insurance, pensions, health, and asset management. Founded in 1970, the company has built a legacy of trust and innovation, serving millions of individuals and businesses across Nigeria and West Africa.

The post Leadway Backs ISSP to Deepen Insurance Penetration, Consumer Trust appeared first on Business Today NG.

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Sokoto govt weakening civil service with retired workers’ retention — ADC guber candidate, Dan’iya

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The ADC governorship candidate in Sokoto State, Manir Muhammad Dan’iya, has called on the state government to review its policy on post-retirement appointments and extensions for retired civil servants.

Dan’iya, in a statement issued on Wednesday by his media aide, Aminu Abdullahi, alleged that retaining retired officials in active positions was weakening the state civil service and limiting career opportunities for younger workers.

He said the policy had affected various levels of the public service, including primary and secondary school teachers, headmasters, principals and Permanent Secretaries.

According to him, some retired officials were allegedly allowed to remain in their former positions beyond the statutory retirement age instead of being engaged through clearly defined contracts for specific assignments.

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“A civil service survives on rules, professionalism, succession and institutional memory. Once those principles are deliberately weakened, the institution itself begins to collapse,” Dan’iya said.

The ADC candidate also alleged that some people without relevant professional backgrounds were being appointed to sensitive positions, claiming that teachers were sometimes deployed as finance officers while trained financial officers were sidelined.

He further claimed that reports from civil servants at the Shehu Kangiwa and Usman Faruk Secretariats indicated that some workers had little or no meaningful work to perform, while others allegedly reported to their offices only a few days a week.

Dan’iya said the situation could affect the government’s ability to deliver essential services in education, healthcare, water, infrastructure, agriculture and security.

“You cannot build a modern state with a civil service that has been reduced to merely occupying offices. Government exists to serve the people, and the civil service is the machinery through which that service is delivered,” he said.

He urged the state government to review its policy on post-retirement appointments, extensions and placements, saying retired civil servants whose expertise was still needed should be engaged through clearly defined contracts rather than indefinite extensions.

Dan’iya said his administration, if elected, would prioritise merit-based appointments and promotions, proper succession planning and the deployment of officers according to their qualifications and areas of competence.

“The Sokoto civil service must not be allowed to die quietly. It is the machinery of government, and when that machinery stops working, the entire state suffers,” Dan’iya said.

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