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Google Being Sued Again; This Time by PayPal and Ebay

Today, we reviewed a document that explains why we have yet to see PayPal as a payment method in the Android Market. It seems Google may have played a bit of devils advocate by recruiting 2 top executives from PayPal and eBay mobile platforms, who in turn recruited other members of PayPal and eBay staff.

eBay and PayPal are suing Google and the two executives for trade secret misappropriation related to mobile payment systems.

All of this comes in timing with the launch of Google’s own Mobile Payment System called Google Wallet which the 2 former PayPal executives; Osama Bedier and Stephanie Tilenius led the presentation.

The document states that Bedier worked at PayPal for nine years, most recently serving as vice president of platform, mobile and new ventures. He joined Google on January 24. Tilenius was at eBay from 2001 to October 2009 and served as a consultant to the company until March 2010. The document states 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 accused Tilenius of recruiting Bedier, thereby breaking a contractual agreement with eBay. It also claims Bedier attempted to recruit former colleagues still at PayPal.

The suit claims 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.

It said Bedier was the senior PayPal executive leading negotiations with Google on Android during this period.

“At the very point when the companies were negotiating and finalizing the Android-PayPal deal, Bedier was interviewing for a job at Google — without informing PayPal of this conflicting position,” the suit claimed.

The suit was filed at Superior Court of the State of California, county of Santa Clara, Case No: CV20l863.

So from the looks of it, the chances of Android Market users seeing a PayPal payment option has gone down the drain.

You can view the filed lawsuit documents here

Sources:Reuters, WSJ