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Paypal suing Google over stolen trade secrets

Paypal has filed a suit against Google in California court. They are saying that the search engine giant have stolen trade secrets from the mobile payment business.

Osama Bedier, an ex paypal staff member was hired at Google and they claim he has shared Paypal’s business secrets with the new employer. The fun doesn’t end there however as another former employee, Stephanie Tilenius has apparently violated her contractual obligations by hiring Bedier at Google.

The lawsuit states that Tilenius was under contract, specifically stating that she not employ eBay employees when she was hired by Google. Paypal claim that she told Bedier that she had a ‘HUGE’ opportunity for him in a Facebook message. Emails and text messages were sent to discuss the job opportunity.

The lawsuit adds “Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers.” While Bedier was chatting to Google about a new job, he was apparently in negotiations to make Paypal a payment option on Android Market.

The lawsuit is getting hot and heavy, mainly because the two companies are targeting similar audiences with new services. The services will allow users to pay businesses by using their mobile phone and to redeem coupons called Google Wallet and Google Offers. Paypal are working on a new sales system for businesses to allow payments to be made via PayPal in addition to swiping a credit card.

KitGuru says: More information as we get it

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