E-commerce firm eBay and its online payment unit PayPal has dragged search engine Google to court over the latter's mobile payment system alleging the internet giant used trade secrets to build a rival service. The move came after Google along with Mastercard, Citigroup, First Data and Sprintfter launched 'Google Wallet' -- a free mobile application which will enable consumers to tap, pay and save with their phones.
In the lawsuit, filed in the Superior Court of California yesterday, eBay alleged that Google poached two senior executives, Stephanie Tilenius and Osama Bedier from PayPal, who then hired other employees from eBay.
The company alleged that those employees used PayPal trade secrets to develop internet search giant's rival product Google Wallet.
"We filed a lawsuit against Google and two former colleagues who now work there, Osama Bedier and Stephanie Tilenius," PayPal Global communications Senior Director Amanda Pires said. Bedier worked at PayPal as a vice president of platform, mobile, and new ventures until being recruited in January by Google.
Google had put Bedier in charge of its mobile payment business, virtually ensuring that he would misappropriate PayPals trade secrets concerning planning and competitive assessments in mobile payment, the lawsuit said.
"Bedier has in fact misappropriated PayPals trade secrets by sharing its mobile payment, point of sale, and digital wallet information with Google," the lawsuit added.
According to the lawsuit, Bedier also represented PayPal in negotiations with Google for using PayPal as a payment option for mobile application purchases on Google's Android market.
Bedier, who played a pertinent role in unveiling the mobile payment system for Google, did not inform PayPal at that stage that he was interviewing for a job at Google, it added. Google scuttled a deal with PayPal to build a competing product with former PayPal employees and executives at the helm, it said. PayPal unit said the lawsuit was necessary to protect its business one of its most valuable assets its trade secrets.
"We treat PayPal's 'secrets' seriously, and take it personally when someone else doesn't," Pires added.
