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PayPal accuses Google of using trade secrets

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Just hours after Google introduced its new mobile payments service, PayPal launched a lawsuit against the Internet giant, citing a violation of trade secrets.

PayPal has named Google and two of its own ex-employees as defendants in the case, and alleges that trade secrets about existing and upcoming PayPal products have been violated in Google’s new offering.
“Spending time in courtrooms is generally not our thing,” writes Amanda Pires, senior director of PayPal global communications, on the company’s official blog. “We prefer to compete and innovate, serving our customers by offering the best way to pay and be paid. That’s how you really win.
“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.
“We spend a lot of time and energy creating the things that make PayPal unique and a preferred way to pay for almost 100-million people around the world. We treat PayPal’s ‘secrets’ seriously, and take it personally when someone else doesn’t.
“So we made a decision today. We filed a lawsuit against Google and two former colleagues who now work there, Osama Bedier and Stephanie Tilenius.”
In the 28-page lawsuit, PayPal alleges that it had been in discussions with Google to make PayPal the payment provider for Google’s Android application market.
However, Google put an end to discussions earlier this year and instead set up its own mobile payments offering, having hired a number of PayPal staff – including Bedier, who was a PayPal executive for nine years and become Google’s vice-president: payments four months ago.
Last week, Google unveiled its own mobile payments offering.