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.


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!


  1. Photograph by Howard Cao via
  2. Via TechChrunch

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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  • Kai99

    Welp, looks like it’s time to stop waiting for a Paypal-Android payment platform and get onboard with Google’s pay system. Doesn’t look like thet’re gonna be working out any differences anytime soon…

  • http://Website Daniel

    Screw Paypal. We can now use Google Wallet. They (Paypal) are only mad cause we (Google) have one of their former team members on our (Google) side.

    • http://Website Wade

      Didn’t you read the entire article? They hired at least 2 former PayPal execs.

  • http://Website Sphericalpuma

    Osama is definitely challenging Reggie Fils-Aime for best “My Body Is Ready,” face

  • http://Website cory

    someones a bit jelly!

  • http://Website eYe

    Well, I hope GW takes off because PayPal is becoming a heaping pile of garbage.
    *goes to shop for NFC-capable phone…

  • Jukah

    If you can’t beat ‘em, sue ‘em.

    • http://Website alex

      apple’s modo?

  • http://Website Jorge

    I have hated paypal for years so I’m on google’s side, paypal can disappear from the face of the earth for all I care.

  • http://Website jmchez

    Favoritism and fan-boy adulation aside, this does not look like those patent trolling lawsuits that have been so prevalent recently. This looks like it could be an actual trade secrets theft or even tortious interference with contracts. Those kinds of lawsuits have bankrupted large companies before .Heard of Texaco?

    This could get ugly and very expensive.

    • mavricxx

      I totally agree!

      • Varemenos


    • http://Website SHiNoBi

      Seriuos part: I agree…But I think this matter will be fix with a pile of money…
      Laughy Part: perhaps paid with new google wallet system? Cuak! :P


  • Android Applications Development

    So now Google Wallet will take place of Pay pay.

  • http://Website Mike

    Because paypal charged me $5 just to transfer some money from a buyer on ebay, I’m totally on google’s side.

    Paypal only needs to charge about $1 at most.

  • http://Website Darkseider

    PayPal is just bent because they didn’t get to it first. Instead of sitting on their asses and trying to negotiate deals with PayPal payments through the app or OS they should have done this. Morons. Snooze you lose PayPal. Better luck next time!

  • which-laptop

    I don’t care if Google have misappropriated something from PayPal. PayPal have been scr**ing customers and small businesses for years while the likes of GoogleCheckout have behaved competitively respectfully and transparently. So I think that if PayPal totally missed out on the mainstream mobile payments market it would be a very good thing for consumers and small-medium businesses. I hope Google get away with it (if they did it).

  • http://Website Rob

    Paypal is scum.. However the problem with Paypal is that as a financial institution they have zero oversight/regulations by the government to make sure they don’t screw consumers over. At the moment they are a pure profit business, and you get exactly what you deserve by using them.

    I think the government should treat Paypal, Google Wallet, and other services more like banks. There’s too much bullshit going on thats screwing over consumers.

  • ncalvin

    It would appear that PayPal is taking the Apple, “u mad,” litigate your competition away approach to business. I guess paying lawyers to try to bury your competition might actually be cheaper than developing innovative, quality products and services.

  • http://Website awesome3

    At first I didn’t care at all about google wallet cause i don’t really see nfc payments replacing my wallet and my keys too? (only if i want to buy a $300 lock from logitech probably) But the prospect of them possibly being a replacement for paypal and online payments and hopefully becoming more common place is very interesting to me. I hate the way Paypal does business and have hoped for years for someone to usurp them. Best of luck to google then.

  • http://Website Jb

    Feels like they’ve had those 28 pages typed up and ready to be dusted off for this moment.

  • http://Website ddee

    I definately think paypal is mad.
    The idea I get from this is like having a really good math teacher at a college whose students always get A’s in his class because he such a great teacher. He quits that college and works for a new one its not like his old college can sue because they lost a great employee. Paypal is mad they lost 2 great employees who probably pitched the idea of NFC like payments or had some other ideas about paypal that were probably shot down. So they took their ideas to google. Google should troll the hell out of paypal…jussayin.

  • http://Website Stan Winstone

    Hmm- that’s a quick response from Google. However if Bedier and Tilenius signed an NDA/non-compete while at Paypal- and I’d be really shocked if someone working at their level didn’t- Paypal will likely prevail in their suit. Individuals do own their knowledge and expertise sure, but not when it’s tied to IP developed while on a competitor’s payroll.

    • http://Website brookmarin

      Non-compete clauses (which i’ve had to sign as an engineer) can not keep you from working within your field. For example, if you have a specialized career in a concentrated area, a non-compete can’t force you into a new field. You have the right to work in the same area, you just can not disclose company secrets or use proprietary information from your previous company. You can use your knowledge of the industry and experiences from your previous company without penalty. Non-compete’s usually have a time-limit on them also.

      With these guys at the exec level, i doubt they really know the nuts and bolts about how things work to cause any infringement on patents.

      The article does mention that Stephanie Tilenius recruited Osama Bedier. I have signed a non-solicitation agreement that says if I leave company A, then I can not “recruit” any one from company A to company B for some length of a time after my departure (usually 1 year). So Stephanie could be liable for infringing on that “contract”…

      • http://Website Stan Winstone

        The interpretation of ‘non-compete’ is really the heart of this lawsuit though isn’t it? Sounds like the development work these two did while at Paypal was substantially drawn from when they moved to Google. And that’s where I think a deal will need to be cut between these two corps.

      • http://Website Ruben

        Andy Rubin is an executive, think he does not know “nuts and bolts”? Google tends to hire pretty sharp people. In fact, “Google” him.

      • http://Website Trey

        Non-compete clauses can mean just the opposite of what you said. I was previously upheld to one. I worked with a company for a year then left because they did not meet their commitments. I moved to another job of the same type thousands of miles away. Yet they still sued me and the company I moved to for non-compete and trade-secrets. In the end, I had to find another means of work for the remainder of the non-compete. In cases like this, the only ones winning are the lawyers.

  • http://Website Raptor

    I understand that this is Android forum. I understand that Google won people with their discounts, discounts, whatever discounts, with their Google Checkout, with not polluted with ad search results. But all this greatness was well executed social engineering of the company with piles of money.

    So clearly this is not a good place to ask but still tell me more why you guys hate PayPal, i was surprised about overwhelming hatred. Really surprised. Is there a chance that most of haters are some kind of paid bashers?

    Yes, PayPal was not user-friendly initially. And it was a lot of annoying attempts of hacking of PayPal, fake emails on behalf of PayPal etc. But i had no single problem with it for almost decade. NOT SINGLE ONE, all was done like a snap. No one else around i’ve heard had either.

    Worst of all this is that Google slowly becomes a monster, it may potentially become a monopoly which will literally kill
    1) others search businesses, GPS businesses, internet commerse
    2) OS companies including Microsoft and non-MS too
    3) credit cards (becoming largest credit card company)
    4) smaller banks (becoming single largest bank)

    See what the potential monster are you supporting? I am not a fan of other search engines, other OSes, credit cards or banks. But the monopoly is worse then all of them. Monopoly = mafia. Need examples?

    • http://Website RD

      I have personally seen Paypal freeze accounts of friends for absolutely no reason at all permanently. I know personally of 4 friends and tons of other people in payment forums I used to be active in. I am talking thousands of dollars. No appeal process, no one that will do anything to help, etc. Just a big fat stone wall. You are just out the money because too many suspicious buyers bought your product or some BS like that. Who knows. I thought eBay buying them would legitimize them, but that is not the case.

      I have never seen Google do anything like this, so I am going to have to disagree with you on this one: Paypal is an awful company. If anyone is playing god in the payment world it is Paypal. You should redirect that fear towards Paypal because they are the ones that would ruin everything if they became a monopoly.

  • pechano

    Goodbuy Paypal.

  • http://Website Marie-Jane

    Ryan Giggs is an asshole and cheater. I hope they decapitate him. Head rolling ….

    • Anisha

      That addresses several of my concerns actaully.

  • http://Website TheGreatLewsky

    I am so freaking tired of all these lawsuits getting thrown around over some stupid crap. Bogus claims, stalling of profit, etc. it really is getting anoying and irritating with this he said she said bull crap. They should take a page straight out of Star Trek and have the 2 CEO’s fight to the death…. Prrrrrra, prrrrrrra!!!

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