PayPal Files Suit against Google for Stealing Trade Secrets

June 3, 2011

Last week, eBay Inc. and its PayPal unit filed suit against Google in a California court claiming the search firm stole trade secrets and was in breach of contract. PayPal said Osama Bedier, a former employee hired by Google, and Stephanie Tilenius, another former PayPal employee who recruited Bedier to Google, “ have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers.” PayPal also notes that from 2008 to 2011, Bedier was helping PayPal negotiate a commercial deal where PayPal would serve as a payment option for mobile app purchases on Google’s Android Market. “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,” the lawsuit said Amanda Pires, senior director, PayPal global communications, in the company’s blog wrote: “Sometimes the behaviors of people and competitors make legal action the only meaningful way for a company to protect one of its most valuable assets—its trade secrets.”