Ebay and its payment unit PayPal are suing Google and two executives for stealing trade secrets related to mobile payment systems. The executives, Osama Bedier and Stephanie Tilenius had previously worked with PayPal and led the launch of Google's own mobile payment system in association with Mastercard, Citigroup and Sprint.
The suit said that Bedier had worked at PayPal for nine years. His last position was vice president of platform, mobile and new ventures, and he joined Google on the 24th of January this year. He is accused in the suit of having, “misappropriated PayPal trade secrets by disclosing them within Google and to major retailers”. TIlenius was at Ebay from 2001 till October 2009 and served as consultant to the company up until March 2010. According to the suit, Tilenius joined Google in February 2010 as vice president of e-commerce.
The suit said that Bedier recruited Tilenius as well as that Tilenius tried to recruit other members from Ebay, thereby breaking certain contractual agreements. Ebay said that Google and PayPal were working together for three years until this year to develop a deal where PayPal would serve as a payment option for mobile application purchases on Android mobile phones.