PayPal sues Google over m-payments platform

PayPal has filed a lawsuit against Google, alleging that a former employee, Osama Bedier had been working on a mobile payments platform for PayPal but then left the company to go and work for Google – allegedly then also taking a collection of trade secrets with him.

The complaint also reveals that PayPal was negotiating with Google to be the preferred payment provider for the Android market, and that the two companies shared a significant amount of commercial information about mobile payment services. 

According to the complaint, Osama Bedier worked for PayPal from December 2002 until January 24, 2011. At the time of Bedier’s departure from PayPal, he served as vice president of Platform, Mobile, and New Ventures. Bedier now fills a similar role at Google.

PayPal has claimed that during the course of his work at Google, Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers.

Significantly, PayPal is claiming that Bedier transferred up-to-date versions of documents outlining its mobile payment and point of sale strategies to his non-PayPal computer just days before leaving the company for Google on January 24, 2011.

PayPal also claims that he has then cited internal PayPal trade secrets when negotiating with retailers who were interested in supporting the Google payments platform.