Feeds

Google accused of stealing PayPal's mobile payment secrets

Exec defected for Google 'while brokering Android pact for PayPal'

New hybrid storage solutions

PayPal has sued Google and two Google executives who defected from PayPal to help the search giant's push into mobile payments. The suit was filed in California on Thursday, the same day Google unveiled its mobile payments system in New York.

The suit (PDF) alleges that Google and Osama Bedier – the PayPal mobile payments exec who departed the company for Google in late January – misappropriated PayPal trade secrets by sharing them within Google and with "major" retailers. It then claims that Stephanie Tilenius, the Google vice president of electronic commerce who also came from PayPal, violated her contractual obligations by bringing Bedier to Google.

According to the suit, Bedier spent three years – from 2008 to his departure from PayPal in January 2011 – negotiating with Google to install PayPal as an option for mobile payments on Android phones. "PayPal provided Google with an extensive education in mobile payments," the suit reads. "Bedier was the senior PayPal executive accountable for leading negotiations with Google on Android during this period. At the very point when the companies were negotiating and finalizing the Android—PayPal deal, Bedier was interviewing for a job at Google — without informing PayPal of this conflicting position.

"Bedier's conduct during this time amounted to a breach of his responsibilities as a PayPal executive."

The suit also claims that before and since his arrival at Google, Bedier had violated his obligations at PayPal – an eBay subsidiary – by soliciting and recruiting other PayPal employees to make the move to Google.

The suit seeks compensatory, punitive, and other damages as well as royalties for the misappropriation of trade secrets. In addition to Google, Bedier, and Tilenius, it lists 50 other unnamed defendants.

At the very least, the suit shows how important both companies see the mobile payments business, and it highlights Google's efforts to use Android as means of delivering its own services. Android is billed as an open-source platform anyone can use, but Google maintains tight control over official Android devices.

In the fall, Google was sued by Skyhook Wireless – the Boston-based outfit that pioneered the art of pinpointing a mobile device's location based on Wi-Fi and cell-tower signals – which accused using Android to strong-arm handset makers into choosing Google's location technology rather than Skyhook's. With its suit, Skyhook claims that Google's head Android man, Andy Rubin, told Motorola co-CEO Sanjay Jha that if Motorola didn't drop Skyhook from its Android phones, Google would remove official Android support. Without official support, Motorola could not use the Android trademark or proprietary services such as the Android Market or Google Maps.

The latest version of Android is always developed behind closed doors and only open-sourced when the first handsets reach the market. Android Honeycomb, designed for tablets, debuted on devices in January, but it has yet to be open-sourced, and Google says it will not be open-sourced before the end of the year. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
'Serious flaws in the Vertigan report' says broadband boffin
Report 'fails reality test' , is 'simply wrong' and offers ''convenient' justification for FTTN says Rod Tucker
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
Shades of Mannesmann: Vodafone should buy T-Mobile US
Biting the bullet would let Blighty-based biz flip the bird at AT&T
Drag queens: Oh, don't be so bitchy, Facebook! Let us use our stage names
Handbags at dawn over free content ad network's ID policy
Net neutrality fans' joy as '2.3 million email' flood hits US Congress
FCC invites opinions in CSV format, after Slowdown day 'success'
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.