PayPal accuses Google of stealing trade secrets

Paypal, the online payments company owned by eBay, has slapped Google with a lawsuit claiming the search engine giant stole its trade secrets ahead of the launch of its mobile payments system.

PayPal filed a suit against Google and two of its executives in a California court, saying legal action was the "only meaningful way" to protect its technology. The legal battle comes as excitement around "wave and pay" technology on mobile phones is soaring. PayPal said it had spent the past year developing next-generation mobile payment technology for retailers.

Google triumphantly launched its own contactless payment system on Thursday. But the shine was taken off Google Wallet by the PayPal lawsuit.

Amanda Pires, PayPal's senior director of global communications , said it was "generally not our thing" to spend time in court. "But sometimes the behaviours of people and competitors make legal action the only meaningful way for a company to protect one of its most valuable assets: its trade secrets."

PayPal's ire was partly aimed at a former executive, Osama Bedier, who it claimed had "misappropriated PayPal trade secrets by disclosing them within Google and to major retailers".

Mr Bedier worked at PayPal foralmost a decade. He left his role as vice-president of platform, mobile and new ventures in January to take up a similar role at Google.

A spokesman for Google said: "Silicon Valley was built on the ability ofindividuals to use their knowledge and expertise to seek better employment opportunities, an idea recognised by both California law and public policy. We respect trade secrets, and willdefend ourselves against these claims."

Mr Bedier's job, PayPal said, was to bring mobile payment and point-of-sale technology to retailers. It added: "Through this work, he had an intimate knowledge of PayPal's capabilities, strategies, plans, and market intelligence" around mobile payments.

Mr Bedier has yet to respond to PayPal's claims.

Stephanie Tilenius, who worked at eBay from 2001 to 2009 before joining Google, was also named in the suit, which alleged she had violated her contractual obligations by poaching Mr Bedier and other PayPal employees.

PayPal pointed to commercial talks it held with Google between 2008 and 2011 over serving as a payment option for mobile app purchases on Google's Android market. "During that time, PayPal provided Google with an extensive education in mobile payments," it said, with Mr Bedier leading the talks for Paypal. "At the very point when the companies were negotiating and finalising the Android-PayPal deal, Bedier was interviewing for a job at Google – without informing PayPal of this conflicting position," the suit alleged, calling it a breach of Mr Bedier's responsibilities as a PayPal executive.

The Google Wallet app would launch this summer, the group said. Earlier this month Orange launched the first contactless payment phones in the UK in conjunction with Barclaycard.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Selby Jennings: Oil Operations

Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

The Jenrick Group: Night Shift Operations Manager

£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...

SThree: Trainee Recruitment Consultant - LONDON

£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...

Day In a Page

Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect
Surrounded by high-rise flats is a little house filled with Lebanon’s history - clocks, rifles, frogmen’s uniforms and colonial helmets

Clocks, rifles, swords, frogmen’s uniforms

Surrounded by high-rise flats is a little house filled with Lebanon’s history
Return to Gaza: Four months on, the wounds left by Israel's bombardment have not yet healed

Four months after the bombardment, Gaza’s wounds are yet to heal

Kim Sengupta is reunited with a man whose plight mirrors the suffering of the Palestinian people
Gastric surgery: Is it really the answer to the UK's obesity epidemic?

Is gastric surgery really the answer to the UK's obesity epidemic?

Critics argue that it’s crazy to operate on healthy people just to stop them eating
Homeless Veterans appeal: Christmas charity auction Part 2 - now LIVE

Homeless Veterans appeal: Christmas charity auction

Bid on original art, or trips of a lifetime to Africa or the 'Corrie' set, and help Homeless Veterans
Pantomime rings the changes to welcome autistic theatre-goers

Autism-friendly theatre

Pantomime leads the pack in quest to welcome all
The week Hollywood got scared and had to grow up a bit

The week Hollywood got scared and had to grow up a bit

Sony suffered a chorus of disapproval after it withdrew 'The Interview', but it's not too late for it to take a stand, says Joan Smith
From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?

Panto dames: before and after

From Widow Twankey to Mother Goose, how do the men who play panto dames get themselves ready for the performance of a lifetime?
Thirties murder mystery novel is surprise runaway Christmas hit

Thirties murder mystery novel is surprise runaway Christmas hit

Booksellers say readers are turning away from dark modern thrillers and back to the golden age of crime writing
Anne-Marie Huby: 'Charities deserve the best,' says founder of JustGiving

Anne-Marie Huby: 'Charities deserve the best'

Ten million of us have used the JustGiving website to donate to good causes. Its co-founder says that being dynamic is as important as being kind
The botanist who hunts for giant trees at Kew Gardens

The man who hunts giants

A Kew Gardens botanist has found 25 new large tree species - and he's sure there are more out there