Google Sued by PayPal | Nashville Web Development & Design
Posted by Brady Mills

Google Sued by PayPal

July 19, 2011

The announcement of Google Wallet back in late May stirred more than interest among the community. Just hours after Google unveiled Google Wallet, PayPal filed suit.

In a 30-page document, PayPal accuses Google of stealing trade secrets and poaching employees. PayPal alleges that Google hired executives from PayPal and eBay who had proprietary knowledge of PayPal’s inner-wokings, competitive analysis and future development plans.

The lawsuit reveals that Google was initially negotiating with PayPal to power payments on mobile devices. Osama Bedier was the PayPal executive in charge of the negotiations with Google. After finally reaching an agreement, the contract was set to be signed; however, Google balked when presented with the deal on October 26th. They refused to sign the deal they had requested.

Unknown to PayPal, Bedier had been secretly meeting with Google senior executives, culminating in a meeting with Larry Page & Jonathan Rosenberg on October 21st. On October 31st, Google extended an offer of employment to Bedier.

The lawsuit notes that Bedier also knew of all future development plans of PayPal’s mobile payments and an internal detailed analysis of Google’s weaknesses in the area. Additionally, Bedier stored some of this information on non-PayPal computers and devices, including the remote computing service ‘DropBox.’

Google’s response? “Silicon Valley was built on the ability of individuals to use their knowledge and expertise to seek better employment opportunities, an idea recognized by both California law and public policy. We respect trade secrets, and will defend ourselves against these claims.”

I wonder what will happen with this one? It certainly seems to me that PayPal has laid out the information in a way that doesn’t look good for Google.