The launch of Google Wallet has resulted in litigation against Google Inc. by eBay’s PayPal Inc. online payment business, which claims that former PayPal employees now working for Google possessed insider knowledge.
EBay and PayPal claim that two former executives stole trade secrets that were related to mobile payment methodology.
The lawsuit was filed within hours of the launch of Google’s new product—Google Wallet—which enables smart phones to have payment functionality in a partnership between credit card company MasterCard, banking giant Citigroup, and mobile carrier Sprint Nextel Corp.
The two former PayPal employees at the center of the legal battle are Osama Bedier and Stephanie Tilenius. PayPal claims that “by [Google] hiring Bedier, with his trade secret knowledge of PayPal’s plans and understanding of Google’s weaknesses as viewed by the industry leader, Google bought the most comprehensive and sophisticated critique of its own problems available,” according to the lawsuit filed.
“Google put Bedier in charge of its mobile payment business, virtually ensuring that Bedier would misappropriate PayPal’s trade secrets concerning planning and competitive assessments in mobile payment,” PayPal claims.
According to court fillings lodged in Santa Clara’s Superior Court, Bedier was employed by PayPal for nine years and his last position before he left was vice president of platform, mobile, and new ventures. Bedier has been with Google since January and is currently the vice president of payments.
The latest response from the Mountain View-based Internet search giant is that California law defends the rights of employees and said, “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.”
Although Google is one of the first to launch the innovative technology of electronic payments over mobile phones, there are many players in the market who have been developing similar applications.
For instance, Amazon is predicted to be following a similar direction and Apple’s iPhones are programmed to accept credit card payments with Square software.
EBay and PayPal claim that two former executives stole trade secrets that were related to mobile payment methodology.
The lawsuit was filed within hours of the launch of Google’s new product—Google Wallet—which enables smart phones to have payment functionality in a partnership between credit card company MasterCard, banking giant Citigroup, and mobile carrier Sprint Nextel Corp.
The two former PayPal employees at the center of the legal battle are Osama Bedier and Stephanie Tilenius. PayPal claims that “by [Google] hiring Bedier, with his trade secret knowledge of PayPal’s plans and understanding of Google’s weaknesses as viewed by the industry leader, Google bought the most comprehensive and sophisticated critique of its own problems available,” according to the lawsuit filed.
“Google put Bedier in charge of its mobile payment business, virtually ensuring that Bedier would misappropriate PayPal’s trade secrets concerning planning and competitive assessments in mobile payment,” PayPal claims.
According to court fillings lodged in Santa Clara’s Superior Court, Bedier was employed by PayPal for nine years and his last position before he left was vice president of platform, mobile, and new ventures. Bedier has been with Google since January and is currently the vice president of payments.
The latest response from the Mountain View-based Internet search giant is that California law defends the rights of employees and said, “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.”
Although Google is one of the first to launch the innovative technology of electronic payments over mobile phones, there are many players in the market who have been developing similar applications.
For instance, Amazon is predicted to be following a similar direction and Apple’s iPhones are programmed to accept credit card payments with Square software.
