May 27 AT 12:45 PM Edgar Cervantes 37 Comments

PayPal sues Google due to the release of Google Wallet (Update: Google responds, ready for the fight)

Google Wallet took the stage today, with an introduction to what the consumer future holds for us. Though we were all very excited to see this, not everyone is exactly happy about Google’s achievements. Soon after the announcement of Google Wallet and Google Offers, PayPal filed a 28-page lawsuit against Google, pretty much stating that the “search giant misappropriated their company secrets”.

Osama Bedier[1], who pretty much led the floor at this morning’s announcement, used to be a key executive for PayPal. He used to work on the company’s mobile-payments platform, and the claim is that Bedier shared company secrets with Google (and other retailers) upon being hired by them.

“Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers.”PayPal Mobile

Problems do not end there, though – it seems like PayPal is also upset at the fact that Stephanie Tilenius, Google VP of E-Commerce (also former PayPal executive) violated contract obligations by recruiting Osama Bedier. Many of us didn’t know that the man we saw this morning worked with PayPal from 2002-2011, and during this time, was involved with negotiations of the deals they were having with the Google Android team.

Lawsuits are constantly flying from side-to-side nowadays, so we do not yet know how big this will become. Stay tuned for more details about this, and let’s hope Google Wallet stays on its feet for its summer release.

Update:[2]

As reported yesterday, soon after the announcement of Google Wallet and Google Offers, PayPal filed a 28-page lawsuit against Google. The popular internet bank claims that Google has misappropriated their company secrets, as Osama Bedier, former key PayPal executive, is now leading Google Wallet.

Just as we expected, Google is definitely not keeping its arms crossed about PayPal’s lawsuit against them. This is what Google has to say about the issue:

“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.” Google Inc.

Google basically claims that they did not infringe on, or misuse, any of PayPal’s secrets. Bedier probably came with a specific mindset, or ideas, on how to go about Google’s new projects. Such knowledge is Bedier’s intellectual property, and he is allowed to use it to find a better job (at Google).

Get ready for the upcoming fight, for it seems like these two titans are about to go at it, and they are both getting ready. What do you guys think about this lawsuit? Let us know which side are you on and why!

References

  1. Photograph by Howard Cao via fastcompany.com
  2. Via TechChrunch TechChrunch.com

Via: cnet

Hello, I am Edgar Cervantes. I am an avid Android fan, and keeping myself updated on the topic is part of my daily life. I will always work hard to give the best of me to our community of Android enthusiasts, and I am very honored to be part of this ship. Hopefully we can all enjoy sharing our knowledge and opinions!

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