According to Reuters, Osama Bedier and Stephanie Tilenius, used to work for PayPal and led the launch yesterday of Google’s own mobile payment system in partnership with MasterCard, Citigroup and phone company Sprint.
Ebay and Paypal were incandescent with rage as Bedier and Tilenius’s Google plans were similar to one it had brought about.
Bedier worked for nine years at PayPal, most recently serving as vice president of platform, mobile and new ventures. He joined Google on January 24 this year.
Tilenius was at eBay from 2001 to October 2009 and served as a consultant to the company until March 2010.
According to eBay, Bedier misappropriated PayPal trade secrets by disclosing them within Google and to major retailers.
Tilenius recruited Bedier and broke a contractual agreement with eBay. Bedier also attempted to recruit former colleagues still at PayPal, the payment outfit said.
PayPal and Google had been working for three years on a deal where PayPal would serve as a payment option for mobile application purchases on Google’s Android phones.
Bedier was the senior PayPal brains behind the deal and finalising negotiations with Google on Android.
Ebay claims that Bedier transferred up-to-date versions of documents outlining PayPal’s mobile payment strategies to his non-PayPal computer just days before leaving PayPal for Google.
The lawsuit claims that by hiring Bedier, with his trade secret knowledge of PayPal’s plans and understanding of Google’s weaknesses as viewed by PayPal, Google bought the most comprehensive and sophisticated critique of its own problems.