Monday, May 30, 2011

PayPal and eBay take Google Wallet to the court


The big announcement made by Google about Google Wallet  threatened eBay and PayPal and now these two companies filed a judicial complaint in the United States, that Google and its employees violate trade secrets and intellectual property with the new service.


EBay and its subsidiary PayPal produced a document with 28 pages (few hours) where they state that two employees providing services specifically related to payment systems for mobile devices left PayPal to work at Google. With these signings, eBay said that the search giant managed to technical and market knowledge to enable the Google Wallet service, which uses communication technology proximity NFC to make payments and commercial transactions.

In the case file, nominally the company cites Osama Bedier, who served as vice chairman of the department Platform, Mobile and New Ventures Company. [Bedier] helped form the broad strategy of PayPal to expand its mobile payment and offers a digital wallet, "says the document, which also states that the executive was" extremely involved "in attempts to become a PayPal option payment at point of sale. Currently, Osama Bedier is pointed to by Google as the leader of the project that became Google Wallet.

Stephanie Tilenius is also mentioned. According to eBay, she worked as a consultant to negotiate the entry of the PayPal payment service in the Android Market, shop for smartphone apps from Google, in the period 2008 to 2011. She suddenly ceased to provide its services to PayPal and then became a Google employee.

EBay discusses what appears to be the purest dirt business. PayPal says it has developed extensive knowledge on how to process payments on mobile devices, which was made possible through the investment of time and money on innovation. Suddenly, according to the company, Google comes along and uses that knowledge without worrying about patents, trade secrets and other corporate resources.

In the documentation, eBay snipe Google comes to commenting on the failure of the company's own initiative in the segment of digital payments. "After five years in operation, Google CheckOut had virtually no impact outside of Google," says the document.

In its official blog, PayPal says it will sue Google because they believe that the law was violated and that their business secrets need protection.

If the U.S. court considers the merits of the case as unfounded, it may be that Google is prevented from placing Google Wallet available to more consumers. Currently, the Wallet is going through a pilot program.

In other words, Google will have to prove in court this whole "Do not be evil".