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PayPal suing former employees who defected to work on Google Wallet

Posted: , by Daniel P.

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PayPal suing former employees who defected to work on Google Wallet
EBay, through its subsidiary PayPal, has filed a lawsuit against two former employees, after they defected to work on Google Wallet. PayPal is supposedly on the verge to make a major mobile payment announcement, similar to what Google Wallet turned out to be yesterday, and it's been working for years to bring it to Android, until Google suddenly decided to do it alone.

Osama Bedier has been a high-ranking PayPal employee, and one of the earliest, but he switched camps in January this year, despite being on the fast track to becoming a PayPal leader, allegedly being offered a hefty sum by Google to do so.

Stephanie Tilenius

Stephanie Tilenius

The lawsuit is also targeting Stephanie Tilenius, who Bedier was reporting to at PayPal, and now at Google they are both reporting to Jeff Huber, a former eBay employee himself. According to PayPal, she poached Bedier, who was the lead negotiator with Google before, despite having clauses in her contract against that.

In a nutshell, PayPal is claiming that Bedier left trade secrets like technology details and partnership agreements about mobile payments on his personal computer, as well as used a Dropbox account to store them, and disagreed to return them to PayPal. He allegedly used this information in meetings with partners about Google Wallet, and it is precisely in areas where Google lacks expertise.

We'll see how this lawsuit turns out, but it's clear now that everyone wants a piece of the mobile payment pie that is alleged to balloon to $630 billion by 2014, according to research. Poaching execs from a major competitor, on the other hand, is not so cool. Apple kidnapped some RIM employees last year to boost its enterprise presence, but they obviously didn't steal any trade secrets worthy of a lawsuit. Watch an interview with Bedier about Google Wallet below.

source: GigaOM

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posted on 27 May 2011, 08:21

2. Sniggly (Posts: 7305; Member since: 05 Dec 2009)

Lol. Well, we'll have to see how similar the two systems are. If EBay has patents they can sue the hell out of Google over it.

posted on 27 May 2011, 14:47 1

6. lubbalots (unregistered)

If anyone haven't noticed, google is not a company of innovation (besides for their google search), they seem to copy and exploit the ideas of others, for exampe android. Nowadays, comsumers and manufacturers don't care. They buy and sell whats popular to the masses.
Pity how people love to fit in, from young to old. If their friends have an iphone, they must have an iphone. If a rep. says an android phone can make you look younger, they will buy an android. If some one says wp7 can revolutionize the way one connecst with the world or how easy it is to use in their daily lives, they will say "no i want an iphone because all my friends have it." Just too bad so sad.

posted on 27 May 2011, 17:25 1

7. Lucas777 (Posts: 2137; Member since: 06 Jan 2011)

completely agree with u... and i cant believe google wud be greedy enough to make one on their own instead of just using paypals probably better and more widebased system...

posted on 28 May 2011, 18:32 1

11. iHateCrapple (Posts: 734; Member since: 12 Feb 2010)

Not to burst your bubble, but Google didnt "copy" android....they BOUGHT them and their ideas.

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