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PayPal Suing Google Over Payment Service

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As is the way these days, a major new announcement regarding some new technology or service seems to be swiftly followed by a lawsuit claiming infringement of patents or trade secrets.

We saw Apple issue such a suit the day after Amazon launched its Appstore for Android and today PayPal has alleged that Google hired two of its executives to obtain trade secrets which helped it launch its Google Wallet system. PayPal has filed a lawsuit in California mentioning two of the Google employees who took to the stage in New York last night to showcase Google Wallet. Osama Bedier, who is Google's vice president of payments, joined  the Mountain View company on 24 January this year having spent nine years at PayPal. At the time Bedier was interviewing for the job at Google, he was also part of a PayPal team negotiating with Google for PayPal to handle sales in the Android Market. PayPal believes Bedier "misappropriated PayPal trade secrets by disclosing them within Google and to major retailers," which are now being used in the Google Wallet service.

         Google Wallet Bedier

Osama Bedier on stage in New York last night showcasing Google Wallet
 

The second person named in the lawsuit is Stephanie Tilenius, who previously worked with eBay between 2001 and 2009 before serving as a consultant to the company until March 2010. The lawsuit claims Tilenius, now Google’s vice-president of e-commerce, recruited Bedier, thereby breaking a contractual agreement with eBay. It also claims Bedier attempted to recruit former colleagues still at PayPal. Google and PayPal had been working together for three years up until earlier this year on developing a commercial partnership to let PayPal serve as a payment option in the Android Market, according to the suit. "At the very point when the companies were negotiating and finalising the Android-PayPal deal, Bedier was interviewing for a job at Google – without informing PayPal of this conflicting position," the suit claims.

Google has not commented on the claims so far, saying it has not had sight of the lawsuit. Whatever happens, it could be that Sergey Brin may be using Google Wallet on his Nexus S for the first time to pay out to PayPal.

Via: Guardian

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