Google Responds To The Lawsuit From PayPal

Posted on May 27 2011 - 6:28pm by Kyle

Basically right after Google announced their new addition called Google Wallet, PayPal set out to file a lawsuit against Google and two of their executives for stealing trade secrets. The two executives, Osama Bedier and Stephanie Tilenius had a one point and time previously worked for PayPal. Also, Bedier was in charge of negotiating a deal with Google on the behalf of PayPal to have their payment mechanism part of Android devices. The deal, of course, fell through and Google in turn hired  the once PayPal employee instead. He in turn helped build Google Wallet.

As with all things, this is PayPal’s side of the situation. Last night, Erick Schonfeld, of Tech Crunch, reached out to Google for a comment regarding this lawsuit. Eventually he did recieve a response from a Google spokesperson who stated:

“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.”

Overall, the statement basically stands as saying that talented employees should be allowed to take their knowledge when they seek better employment. Of course, anyone can take their knowledge but they can not take trade secrets with them to a new job? Google will be surely arguing the fact that what Bedier brought to the table was general knowledge of the industry and not any trade secrets that had to do with PayPal.

Disputes when it comes to employment is nothing new regardless if it is in Silicon Valley or anywhere else for that matter. Regardless, it is a bad move on PayPal’s part and unless they have in hard concrete proof  regarding the “stealing of trade secrets” it just shows how scared they may be of this upcoming service from Google.

Source:

Tech Crunch

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  • http://twitter.com/atlmann10 atlmann10

    I think Paypal just saw a great time with a somewhat believable story to rob Google of some cash which they will get either as a maybe by taking them to court, or with a payoff prior to the court ever getting to actually weigh the case based on facts and merit. Hey if I was one of the previous larger way to make a payment or that companies owner it would probably be a good bet to me, and everyone knows Google has a lot of cash as well. The thing is Google already had a payment system called Google checkout. Where I could more see that being a real lawsuit it never became one. So I am betting if Google actually takes this to court they will win the case. However it is also often much easier to pay off something rather than get negative publicity in today’s corporate world as well because even if you win there will be many that site the case being filed far into the future and said company being demonized even if and when they do win legally.
    Apple makes gobs of money doing it and getting pay off as does Microsoft.