PayPal Says Google Wallet Steals Trade Secrets (NewsFactor)

Friday, May 27, 2011 3:01 PM

While Google was outlining Google Wallet for ambulatory payments, PayPal was activity a causa against the see giant. eBay-owned PayPal filed meet against Google and two executives for allegedly stealing change secrets that helped Google amend Google Wallet and near for a piece of the multibillion-dollar mobile-payments pie.

PayPal sued Google in the Superior Court of the State of Calif. in Santa Clara County. The meet names Google and past PayPal employees and today Google execs Osama Bedier and Stephanie Tilenius.

Bedier previously was evilness chair of PayPal's ambulatory papers and came aboard as Google's evilness chair of payments in January 2011. Tilenius served in different chief roles at PayPal and eBay, including evilness chair of PayPal Merchant services, from 2001 to 2009, when she joined Google as evilness chair of commerce.

"Silicon Valley was shapely on the noesis of individuals to use their noesis and skillfulness to essay meliorate employment opportunities, an intent constituted by both Calif. accumulation and open policy," Google said in a publicised statement. "We attitude change secrets, and module defend ourselves against these claims."

PayPal's Beef

The PayPal upset argues that Bedier had hint noesis of PayPal's capabilities, strategies, plans and market intelligence regarding ambulatory payments and attendant technologies -- information constituting in conception PayPal's change secrets. "In the course of his work at Google, Bedier and Google hit illegal PayPal change secrets by disclosing them within Google to field retailers," the upset alleges.

PayPal also asserts that Tilenius solicited and recruited Bedier to Google. By doing so, PayPal argues, Tilenius desecrated her contractual obligations to eBay. PayPal said Bedier also desecrated his obligations to eBay by soliciting and recruiting PayPal employees to move ship to Google.

"In addition, from 2008 to 2011, Google and PayPal were negotiating a advertizement deal where PayPal would serve as a commercialism choice for mobile-app purchases on Google's Android Market. During that time, PayPal provided Google with an comprehensive activity in ambulatory payments," PayPal said in the complaint.

"Bedier was the grownup PayPal chief accountable for leading negotiations with Google on Android during this period," it added. "At the rattling point when the companies were negotiating and finalizing the Android PayPal deal, Bedier was interviewing for a job at Google -- without revelation PayPal of this inconsistent position. Bedier's carry during this instance amounted to a breach of his responsibilities as a PayPal executive."

Wrongdoing?

The movement of executives and added workers from consort to consort is scarce big news in Silicon Valley, said Charles King, capital shrink at Pund IT, but if Tilenius dispatched Bedier an questionable Facebook state before she left PayPal, he's not trusty how that could break an visit enforceable after she left PayPal for Google.

"The state could suggest that Tilenius was acting for Google preceding to actually joining the company. But the reality of the workplace is grouping who are employed for companies are actively talking most employed for added companies before they leave. A aggregation of that has to do with the dates of when these events occurred and whether or not the no-solicitation visit was enforced at the instance that she dispatched this Facebook note."

The bottom line: Talk of electronic wallets and portable payments has been around for the meliorate conception of a decade. No consort has prefabricated a truly viable playing supported on the construct so far, but PayPal has prefabricated its moves and is understandably intent on protecting its highbrowed property.

"As Google expands its Atlantic of welfare and skillfulness beyond online advertising to enable electronic purchases of digit sort or another, it's feat to be touching live wires with some number of competitors with a field print in this area," King said. "It would be scarce astonishing if future suits attendant to different kinds of electronic payments were filed against Google."


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