Google is sued by PayPal over mobile payment secrets

Google has apparently another legal problem on its hands. A lawsuit has been filed by PayPal, the fastest-growing unit at EBay. PayPal claims that Google misappropriated trade secrets from PayPal’s mobile payment business. The lawsuit was filed yesterday in San Jose, California, according to Bloomberg.

Apparently, Google hired a PayPal executive by the name of Osama Bedier. This individual proceeded to steal confidential company information. In addition, PayPal claims that another former employee, Stephanie Tilenius, violated contractual obligations. She was the one responsible for recruiting Bedier and getting him to Google. Osama Bedier is in charge of efforts to bring Google’s point of sale technologies and services to retailers. According to the complaint, “Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers. ” PayPal is working with retailers to develop a new point of sale system for retailers. Google also revealed services to let consumers pay merchants and download coupons with a tap of their mobile phones.

PayPal also claims that Bedier discussed a job with Google while leading negotiations to make PayPal a payment option on Google’s Android market. He didn’t disclose the talks, which is a breach of his fiduciary duty, according to the company.  Apparently, Tilenius was under contract to not recruit employees when she left EBay in 2009. She sent Bedier messages on Facebook telling him she had a “HUGE” opportunity for him and sent him advice while he interviewed for a position. Aaron Zamost, a spokesman for Google, said that Google has not received a copy of the suit and cannot comment.

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11 Comments

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Paypal can eat it. They are just jealous that they could never pull something like this off, and I would hate for them to get there first. Their fees are absolutely ridiculous, especially the exchange rates that THEY set for themselves.

Yaayy at opinions from a bunch of people who think banks shouldn't charge fees, auction houses shouldn't take cuts, and overall, clearly have never heard of Craigslist if they're so daggone offended by that big, bad, mean old doodie head eBay.

Nashy said,
People are seriously whinging about the fees PayPal charge? God, they charge hardly anything.

Paypal charges a percentage of anything you sell on ebay, which can add up to a lot. They make big bucks off of doing very little to nothing. And have a long history of locking peoples accounts and keeping the money.

Nashy said,
People are seriously whinging about the fees PayPal charge? God, they charge hardly anything.

You obviously have NOT dealt with them enough. They charge a lot. It you are a business that receives lots of small payments for services, lose a lot of money to them

Paypal can jog on.

I hate the monopoly eBay has at the moment, the only form of online payment you can use is their own service Paypal so they get double the fees, listing fees, final price fees then they get their cut of the payment that you just took after selling something so you are stuck with transaction fees with paypal as well, then if you want to withdraw the money from paypal you are stuck with fees to transfer it to your bank.

Its disgusting the amount of money they take for auctions.

Jenson said,
Paypal can jog on.

I hate the monopoly eBay has at the moment, the only form of online payment you can use is their own service Paypal so they get double the fees, listing fees, final price fees then they get their cut of the payment that you just took after selling something so you are stuck with transaction fees with paypal as well, then if you want to withdraw the money from paypal you are stuck with fees to transfer it to your bank.

Its disgusting the amount of money they take for auctions.

Really? It is the only form online payment in the states? Never thought it could be. Here in Brazil we have at least 3 services available (and this is not counting direct account debit).

Jenson said,

Its disgusting the amount of money they take for auctions.

Yea honestly I think eBay is going down the tubes as well, I can't say I have bought anything off there in 2-3 years, and most all of the large decent sellers have moved on. The place is now being over run with large resellers.

It's kind of like when you go to a Flea Market, and all the vendors are selling new items or no name china made crap, and there are no deals.

Sad...

Jenson said,
Paypal can jog on.

I hate the monopoly eBay has at the moment, the only form of online payment you can use is their own service Paypal so they get double the fees, listing fees, final price fees then they get their cut of the payment that you just took after selling something so you are stuck with transaction fees with paypal as well, then if you want to withdraw the money from paypal you are stuck with fees to transfer it to your bank.

Its disgusting the amount of money they take for auctions.

Fully agree with this. The fees you are charged are an absolute joke and I feel like I'm being robbed with the large cut they take. Why on earth should they get a percentage of the final value I sell something at? Thats absurd!! They should have tiers of fees for certain amounts of money. They make an absolute killing and I am reluctant these days to sell on eBay even though sometimes I kinda have to. I really hope Google wins this fug you paypal.

Edited by witalit, May 27 2011, 1:13pm : I hate paypal/ebay.