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PayPal Sues Google Over Mobile-Payment Secrets

Bloomberg reports that PayPal is suing Google and two of its executives, claiming that the search giant has misappropriated trade secrets from its mobile payment business. The company alleges that Osama Bedier, a former PayPal exec now employed by Google, stole confidential information from PayPal is now leading Google’s efforts to "bring point of sale technologies and services to retailers on its behalf."

"Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers," Bloomberg cites PayPal’s suit as saying.

Also named in the suit is Stephanie Tilenius, who also left her position at PayPal to go and work for Google. Tilenius supposedly breached her contract by recruiting Bedier and Bedier is thought to have hired away PayPal employees too.

Unnamed PayPal sources that spoke to GigaOm say Bedier, who previously led PayPal's mobile payment and point-of-sale efforts, had access to information regarding technologies, strategies and partnerships for PayPal's own venture. In fact, Bedier was apparently leading talks with Google regarding the possibility of PayPal becoming the prime payment option for Android and at the same time interviewing with Google for the mobile payments job. Assuming all this is true, it's hard to see how Bedier would be able to keep that information separate from his work on a very similar product at Google. Throw in the fact that PayPal is supposedly preparing to make a "sweeping product announcement in the coming days relating to open commerce platforms and mobile payments" and it's easy to see why they might be feeling a little peeved.

For its part, Google has said it will defend itself against the allegations.

"Silicon Valley was built on the ability of individuals to use their knowledge and expertise to seek better employment opportunities, an idea recognized by both California law and public policy," Google spokesman Aaron Zamost is quoted as saying. "We respect trade secrets, and will defend ourselves against these claims."

Further Reading

  • fir_ser
    I wonder where this case will end up.
    Reply
  • Someone needs to hack into Google and crack that rotten egg wide open.
    Reply
  • Zeldazackman
    Meh, I Dont Like Paypal Because Of The Fact That They Already Operate A Shady Business(Freezing Accounts For No Reason, And Taking Money From My Checking Account With Out My Permission) They Pretty Much Killed Ebay' At This Point As well.
    Reply
  • memadmax
    yea.....
    Reply
  • husker
    ZeldazackmanMeh, I Dont Like Paypal Because Of The Fact That They Already Operate A Shady Business(Freezing Accounts For No Reason, And Taking Money From My Checking Account With Out My Permission) They Pretty Much Killed Ebay' At This Point As well.I think Ebay owns PayPal.
    Reply
  • ebay owns paypal but paypal is the one to start the fire.so basically the spot light is still paypal...

    I think before the two leave paypal, they have already did a long talk with lawyer.. Worst case if they lost the case, .there are still many ways you can do to continue help google. so I think this is all a marketing stun paypal is pulling here...
    Reply
  • kingnoobe
    Google in deepshit.. Was that supposed to be a joke? Come on ebay is big, but not on googles level. Sure google may have to pay some stuff that's if it's able to be proven. Not to mention this is gonna take years unless google decides to go ahead and settle.
    Reply
  • My country isn't on the PayPal list so...
    go google, go!
    Reply
  • hoofhearted
    Paypal can burn. Go google.
    Reply
  • ubercake
    People have been discussing mobile payments for years. This is like Mastercard suing Visa for operating credit card services or BP suing Shell for selling gas.

    Sounds like Paypal is dealing with some serious internal issues if many of their people with "secrets" continue to leave.

    When they get this technology working, though, you're not going to ever want to use your phone. Also, imagine the programs hackers will be able to write to emulate other credit card numbers and phone credentials. I'm sure the pre-paid disposable market will boom when these "secrets" hit the mainstream.
    Reply