Rosa Events report on how PayPal are suing Google over leaking of trade secrets...............

May 27, 2011 - PRLog -- PayPal alleges that the execs, Stephanie Tilenius and especially top exec Osama Bedier, whom Google poached from PayPal, took with them trade secrets that Google is using especially ones regarding the mobile transactions project.

In particular, PayPal says that at the time Bedier was leading negotiations with Andy Rubin for PayPal to become the favoured payments platform on Android, he was also interviewing at Google for a job. The lawsuit also claims that Bedier and Tilenius breached contractual agreements not to poach from PayPal after they were recruited at Google, hiring two other PayPal employees. To add insult to injury both Bedier, now Google's vice president of payments, and Tilenius were among those showing off the technology in New York.

Rosa Events have been informed that the wallet payment app itself will require a PIN, as will each transaction. The payment credentials will be encrypted and stored on a chip, called the secure element, inside the phone and the app itself will be free to users.
The suit tells how Bedier worked for nine years at PayPal, most recently serving as vice president of platform, mobile and new ventures. He joined Google on 24 January 2011. Tilenius was at eBay from 2001 to October 2009, and served as a consultant to the company until March 2010. It also tells that Tilenius joined Google in February 2010 as vice president of e-commerce. Bedier is accused in the suit of having "misappropriated PayPal trade secrets by disclosing them within Google and to major retailers".

The suit accuses Tilenius of recruiting Bedier, thereby breaking a contractual agreement with eBay. It also claims Bedier attempted to recruit former colleagues still at PayPal. It goes on to claim that PayPal and Google had worked closely together for three years until this year on developing a commercial deal where PayPal would serve as a payment option for mobile app purchases on Google's Android phones.

In any case, Rosa Events feel this lawsuit is a big, developing story, and only goes to show how big the stakes are in the future of mobile payments.