PayPal sues Google Inc. for using misappropriated trade secrets of its Mobile Payment Business

Teni Sow | May 28, 2011 | 0 Comments

PayPal Inc files a Lawsuit against Google in State court of San Jose,California for using its trade secret of its Mobile Payment Business. In its lawsuits it mentions that one of its former PayPal executive Osama Bedier who is presently working at the Google Inc. stole confidential information of PayPal.

Another ex employee executive of PayPal, Stephanie Tilenius who is currently working at Google violated the contractual obligations of recruitment and recruited Bedier. Google’s efforts of bringing point-of- sale technologies & services to its retailers is headed by Bedier. As per the complaint both Google and Bedier have misappropriated PayPal business secrets through revealing it to Google and to its major retailers.

In order to build their cell phone businesses both the companies are trying hard to get into storefronts from their online transactions. PayPal based in Santa Clara is working with major retailers in order to develop a new type of system of point of sale.Mountain View, California based Google on Friday revealed two new services for its consumers to pay to merchants and download the coupons with just a tap of their cell phones.

Google spokesman Aaron Zamost in an email said that they respect  the trade secrets and they will defend all these claims of PayPal. He also added in the mail that the silicon valley was build on individual’s ability to utilize their knowledge and skills for better employment opportunities. This was the idea which was accepted by both the California law and the Public Policy.

Android Talks

Bedier who left the PayPal in the month of Jan and while discussing its job with google he simultaneously negotiated on making PayPal payment option for google’s Android market. The company also said that Bedier did not disclosed his job related talks and breached his fiduciary duty.

PayPal added that, in 2009 Tilenius left Ebay who was working under contractual agreement of not recruiting employees.  As per the complaint filed, Tilenius through social networking site Facebook messaged Bedier that she has a “HUGE” opening for him and further send him emails and text messages giving advices while he was interviewed for a job.

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