PayPal sues Google, former execs over Google Wallet

By on May 27, 2011, 12:47 PM

Just hours after Google announced their entry into mobile payments the company has been slapped with a lawsuit from none other than PayPal, alleging that the search giant misappropriated trade secrets when it hired away PayPal mobile executives. The suit specifically mentions Osama Bedier and Stephanie Tilenius, both former PayPal employees who were on stage to unveil Google's new Google Wallet program yesterday.

Apparently the whole ordeal begun in 2008 when PayPal's parent company, eBay, started to negotiate with Google to make PayPal a payment option for mobile application purchases on the Android Market. The negotiations went on for a while, with Bedier taking over in early 2010 just around the time Google hires Tilenius as vice president of e-commerce.

Once at Google, Tilenius begins to lure Bedier away from PayPal to work for her, despite contractual agreements to abstain from that. Apparently, after accepting then rebutting the job offer, a multi million deal does the trick. Making matters worse the complaint alleges that Bedier had begun the interview process with Google as he continued to negotiate with them on PayPal's behalf to make PayPal a mobile payments option on the Android Market.

In January 2011, Bedier supposedly transferred PayPal's mobile payment strategy to his personal, non-PayPal computer, and shortly afterwards made the move to Google official. This decision sent shock waves inside PayPal, according to reports, not to mention Google reneged its finalized agreement with PayPal saying it was building a competing product.

CNN has a detailed timeline of the events and it seems PayPal would have reason to be angry. The company believes that Bedier and Tilenius’ inside knowledge of technology, strategies and partnerships presents a real threat to their business. Google has not yet responded to the lawsuit but from the looks of it they could be in for a nasty fight.




User Comments: 13

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Guest said:

I absolutely despise paypal and really hope they lose... that greedy company, almost as bad as sony

Trillionsin Trillionsin said:

Guest said:

I absolutely despise paypal and really hope they lose... that greedy company, almost as bad as sony

Paypal is bad?

I've never heard of anything bad about them... or had any bad experience with them. Actually, I've had just the opposite. They've been nothing but helpful in helping me get money back from transactions. I've never paid Paypay a single cent since I've had an account with them.

Also, I had no idea eBay is there "parent" company, whatever that means... this article is hard for me to understand overall.

alleging that the search giant misappropriated trade secrets when it hired away PayPal mobile executives.

...uhh, what?

Guest said:

R U kidding me? PayPal is the worst. Just Google PayPal and the word scam. There are hundreds if not thousand of people who have been duped by the control freaks at PayPal. I realize Google may have over stepped their bounds but in reality, I would be DELIGHTED if PayPal lost. Call it what you want but what goes around comes around. (Karma)

cmbjive said:

I've never had a problem with PayPal. Until they create a bad experience with me I'll consider them a reputable company. Maybe the bad relations with other consumers might have influenced me if was a new PayPal customer, but I've been a satisfied customer for almost six years.

Win7Dev said:

Just google the number of facebook, twitter, dell, hp, verizon, att, sprint, etc. scams and you will find tons. All companies have at least one mistake with an angry/crazy customer that turns into a story on a website. Its just how the world works. PayPal has their share of these stories too, but when you are a company as widely known as paypal they get more business which means more potential mistakes.

Chazz said:

Do no Evil.

Tekkaraiden Tekkaraiden said:

I've never had any issues with paypal, I've found them a great help dealing with non responsive sellers.

@trillionsin

Paypal was originally independently owned, ebay purchased them in the early 2000's.

matrix86 matrix86 said:

R U kidding me? PayPal is the worst. Just Google PayPal and the word scam

And? Just because people have a bad experience, doesn't make it a scam. Everyone I know has always used PP, and none of us have ever had any problems. They actually got me money back in one instance when a company I ordered from wouldn't. You know how people are...one bad experience and all of a sudden that company is the devil.

tonylukac said:

When I've used Paypal, thru no fault of their own, I've had so many fake scams trying to get money from my Paypal account, usually thru email. It seemed like every week I was sending them one of those bogus emails to check out.

treetops treetops said:

Iv never had trouble with paypal or heard anyone complain about them before. I think paypal is amazing. They are pioneers.

Leeky Leeky said:

And? Just because people have a bad experience, doesn't make it a scam. Everyone I know has always used PP, and none of us have ever had any problems. They actually got me money back in one instance when a company I ordered from wouldn't. You know how people are...one bad experience and all of a sudden that company is the devil.

I second that - Paypal is without a doubt my most preferred online payment gateway, not least because of its simplicity when making payments.

Guest said:

People just grumble over PayPal because of issues, personally had no issue with the company. Some minor problems but we all get those, still I've yet to really be scammed or anything either. Almost no emails sent, and 95% of spam is in my junk folder anyways. Really I just look at my folder each day, at least maybe 3-4 times a day and delete all the spam emails.

Overall nothing asking about my PayPal since a few years ago, it's almost rare if I'd ever see one again. On the other hand I see WoW scam emails daily, yet I've stopped over 2 years ago and had my account locked by their staff. I felt it was a bit risky though letting it sit there, despite it being frozen any "free" time was added unlocking it again.

So anyone really jaded by PayPal issues, don't give people grief because we're not all in the same boat. Personally I've had some minor grumblings, mostly over the lack of a consistent currency rate change but that's it. Really it's not all bad, and all companies no matter how big or small, will have some bad customer giving some scathing review. Doing their best to influence people to avoid it, companies are not perfect so don't expect them to be.

larebz said:

Bought a Wii for £190 off ebay few years back and the seller never sent it and ignored all my emails, after a dispute was opened where at the time ebay could only refund £125 back to me Paypal got the rest of the money back to me, whether that was taken out of the sellers account or out of Paypals pocket themselves i was just happy to have my money back and grateful for how they handled.

I always wonder why people slate Paypal because i've never had any problems at all.

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