Google Wallet is set to face tough time as PayPal has filed a lawsuit for stealing trade secrets, barely hours after Google officially launched Google Wallet and Google Offers services.
Thursday was a big moment for the IT giant Google, which announced the launch of new groundbreaking mobile shopping service using near field communication (NFC) technology, Google Wallet and Google Offers. The NFC technology allows two close-by devices to transfer data, which will allow a Smartphone with Google Wallet to behave like a credit card.
But they are confronted with many hurdles to overcome, with the company and two of their key executive, Osama Bedier and Stephanie Tilenius, being sued already.
According to PayPal, who along with eBay filed a 28-page lawsuit on Thursday against Google and two of the formal PayPal's employees who now work for Google, saying they have defendants have violated the law.
PayPal is reportedly to have tried to enter into mobile payment industry, according to PC Magazine.
Amanda Pires, the Senior director of Paypal’s global communications wrote on PayPal’s blog on Thursday, “We treat PayPal’s ‘secrets’ seriously, and take it personally when someone else doesn’t. So we made a decision today. We filed a lawsuit against Google and two former colleagues who now work there, Osama Bedier and Stephanie Tilenius.”
Paypal has also made the lawsuit document available on their blog.
Bedier, a formal senior executive at PayPal who is “now leading Google’s efforts to bring point-of-sale technologies and services to retailers on its behalf”, was charged for misappropriating “PayPal trade secrets by disclosing them within Google and to major retailers”, according to the complaint.
Tilenius, a former eBay executive, was charged for violating the contract by “soliciting and recruiting PayPal employees to work at Google.” She was under a contract not to recruit employees.
According to the complaint, Tilenius sent a Facebook message to Bedier in July, 2010 that reads, “How are you? Hope the wife and kids are well... hard to believe you have 4 kids, they all just be so big now. I heard from a little birdie that you might be open to bigger and better challenges, I have a HUGE opportunity for you, would love to chat if you are interested.”
Google plans to fight back, according to a Google spokesman Aaron Zamost in an email to Erick Schonfeld of TechCrunch.
“Silicon Valley was built on the ability of individuals to use their knowledge and expertise to seek better employment opportunities, an idea recognized by both California law and public policy,” wrote Zamost.