PayPal has sued Google over
claims that ex-PayPal executives, who now work for Google, have misappropriated
PayPal trade secrets by sharing them with Google as well as other large
PayPal Inc., a rapidly growing unit at the online marketplace eBay Inc.,
is suing tech giant
Google after two ex-executives allegedly abused PayPal trade
secrets and violated contractual obligations.
According to the case, Stephanie Tilenius, an ex-PayPal executive, left PayPal
to work for Google in 2009. She was under contract not to recruit PayPal employees
once she left, but later sent Osama Bedier, another now ex-PayPal executive, a
message on Facebook offering a "huge" job opportunity at Google. She
also e-mailed and text messaged him during his interview process to give
But Tilenius' violation of contractual obligations is just the tip of the
iceberg. PayPal also claims that Bedier, once entering Google, wrongfully stole
and shared confidential PayPal information. The complaint states, "Bedier
and Google have misappropriated PayPal trade secrets by disclosing them within
Google and to major retailers." PayPal's complaint also mentions that
Bedier has guided Google's attempts to "bring point of sale technologies
and services to retailers on its behalf."
Bedier allegedly directed discussions to make PayPal a payment option on
Google's Android Market while also talking about a job with Google, which he
did not disclose to PayPal. PayPal saw this as a "breach of his fiduciary
With both PayPal and Google pushing for mobile payment systems, the competition
is heating up, and no one wants to be left behind. For instance, Verizon
Wireless, AT&T Inc. and T-Mobile USA teamed up in a joint venture with
Discover Financial Services' national payment network to form Isis, and Google announced "Google
Wallet" in New York just yesterday.
Google Spokesman Aaron Zamost said that the company has not received a copy of
the suit yet, and cannot comment until it does.