On May 26 dated this year at the Superior Court of Santa Clara of the State of California, PayPal filed suit against Google and two of its employees after Google had launched the “Google Wallet” due to an alleged misappropriations of trade secrets and breach of contracts. The case now in court is entitled as Paypal Inc. vs. Google Inc.
According to the facts of the case, Osama Bidier the current Vice President of Google’s payments and Stephanie Telius, Vice President of Google’s commerce were former executives of Paypal that has acquired the same position in the company until the time of their departure in 2011 and 2010 respectively. Due to this, PayPal complains that Telius has allegedly recruited Bedier in violation of recruitment obligations. On the other hand, Bedier was alleged of misappropriating the trade secrets as he has broad knowledge on payment plans.
Nevertheless, Google’s reaction on the said accusation has stated the following: “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. We respect trade secrets, and will defend ourselves against these claims.”
We can view the background of these two companies by knowing that Paypal is an online payment processor which has led the multi-dollar mobile payment industry for 11 years or more. While Google is the most popular Internet search engine in the world, operating mainly on advertising sales, shopping services and payment processing which made it a competitor to eBay, PayPal’s principal company.