PayPal Sues Google Over Mobile Payment Secrets. Google Says People Have The Right To Choose Better Employment.

Posted May 27, 2011

eBay Inc. (NASDAQ:EBAY) subsidiary PayPal is suing Google Inc. (NASDAQ:GOOG) as part of claims that Google had stolen trade secrets from PayPal’s mobile payment business. eBay is saying that former PayPal executive and current Google VP of Payments Osama Bedier stole confidential PayPal information.

PayPal is also accusing Google commerce head and former PayPal employee Stephanie Tilenius of violating contractual obligations by hiring Bedier. According to PayPal’s complaint, Bedier “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,? said PayPal in the statement. Both Google and PayPal are working on launching a storefront business by working with major retailers to develop point-of-sale systems.

PayPal is alleging that Bedier discussed a job at Google at the same time as leading negotiations for making PayPal a payment option on the Android Market. Bedier allegedly did not disclose the job related talks.

Google responded by saying:

?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. We respect trade secrets, and will defend ourselves against these claims.?

Yesterday Google had officially announced Google Wallet, an app that turns your mobile device into a wallet.