We're hiring

We love digital - Call
03332 207 677
and say hello - Mon - Fri, 9am - 5pm

Call 03332 207 677

James Perrin

Paypal Sues Google over ‘Google Wallet’

27th May 2011 News, Industry News 2 minutes to read


The search engine giant is no stranger to court room sagas, with plenty of investigations, probes and hearings over the last year or so [See: Google Readying itself for a Big Hit from US Regulators and Are Google Trying To Appease The Germans?].

It seems as though it’s not just privacy and advertising practices that governments and rival companies are concerned with. Reports today have revealed that eBay, and its online payment system PayPal, are suing Google over allegedly stealing mobile payment trade secrets.

Specifically the allegations are levelled at two former executives of PayPal, Osama Bedier and Stephanie Tilenius. They claim that both Beider and Tilenius, who were poached by Google, took with them trade secrets of the highly sought after payment system.

In particular, Beider, was a big hitter at Paypal. According to Paypal, he led the negotiations to take their payment system to the likes of Android – a huge deal that would have seen Paypal become the chosen payment platform for all smartphones using the Android operating system.

However, at the same time, Beider was headhunted by Google to become Vice President of Payments and finally took up the post in January of this year. They claim that this process of events – whereby Bieder started negotiations between Paypal and Android, only to leave Paypal and join Google, was part of the reason why they are suing.

Bedier has therefore been accused of “misappropriated PayPal trade secrets by disclosing them within Google and to major retailers”; this is on top of a number of other issues, including the breaking of contractual agreements with eBay from Tilenius for allegedly attempting to recruit Beider in the first place.

Mobile payment is predicted to boom around the world this year, and as a result many internet companies want to utilise the service – or be the first to do so. Yesterday Google revealed their payment system in the form of a free app called ‘Google Wallet’. Along with a consortium of financial intuitions including Citibank and Master Card, and mobile technology providers Sprint Nextel, Google wanted to be the first to spearhead the mobile payment market.

What is unclear is why Paypal took so long to file a lawsuit, especially if they had known their executive had been poached, taking with him all of their trade secrets. Why wait until Google actually release their product? Well, the speculative cynic would argue they wanted rain on Google’s parade. But surely it would have been worth nipping this in the bud as early on?

Ultimately though Google wanted to be the first, and thanks to Paypal’s delay, they were. Being first is everything and some may say that you can’t put a price on it, however for Google it would appear the cost of being first in this case could prove quite expensive.

Share this post

James Perrin
About the author

James Perrin

Content Marketing Manager, James Perrin is a regular contributor to the Koozai blog. Well experienced in sales and marketing, James also has a passion for journalism and media, especially new media. From the latest industry related new stories to copywriting advice, James will provide you with plenty of digital marketing information.

What do you think?

  • aspect-ratio Koozai - New Offices in Old Street, London
    Cat Birch

    We’ve Expanded Into Bigger And Better Offices In London

    We continue to go from strength to strength here at Koozai, and we are very proud to announce that our London branch has expanded into even bigger and better offices.
    (more…)

    Cat Birch
    @MissCatBirch
    9th Feb 2017
    News
  • aspect-ratio Google Tag Manager
    Emma North

    An SEO’s Guide to Planning Google Tag Manager Migration

    Google Tag Manager (GTM) is a powerful tool and when properly understood and implemented, can be an SEO’s best friend.

    However, before you can actually begin a migration to GTM, you need to take some key steps to ensure everything goes to plan.

    (more…)

    Emma North
    2nd Feb 2017
    Analytics

Digital Ideas Monthly

Sign up now and get our free monthly email. It’s filled with our favourite pieces of the news from the industry, SEO, PPC, Social Media and more. And, don’t forget - it’s free, so why haven’t you signed up already?