* Suit claims exec "misappropriated trade secrets"
* Says PayPal and Google worked on deal for three years
* Companies fighting to own "digital wallet" of the future
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By Yinka Adegoke
NEW YORK, May 26 EBay and its online
payment unit, PayPal Inc, on Thursday sued Google Inc
and two executives for stealing trade secrets related to mobile
The two executives, Osama Bedier and Stephanie Tilenius,
were formerly with PayPal and led the launch on Thursday of
Google's own mobile payment system in partnership with
MasterCard , Citigroup and phone company Sprint
The suit highlights the growing battle by a wide range of
companies from traditional finance to Silicon Valley trying to
take a major stake in what has been described as a $1 trillion
opportunity in mobile payments. The mobile phone is seen as the
digital personal wallet of the future.
The eBay suit said Bedier worked for nine years at PayPal,
most recently serving as vice president of platform, mobile and
new ventures. He joined Google on Jan. 24 this year.
Tilenius was at eBay from 2001 to October 2009 and served as
a consultant to the company until March 2010. The suit says
Tilenius joined Google in February 2010 as vice president of
Bedier is accused in the suit of having "misappropriated
PayPal trade secrets by disclosing them within Google and to
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.
Ebay said PayPal and Google worked closely together for
three years until this year on developing a commercial deal
where PayPal would serve as a payment option for mobile
application purchases on Google's Android phones.
It said Bedier was the senior PayPal executive leading and
finalizing negotiations with Google on Android during this
It also claimed Bedier transferred up-to-date versions of
documents outlining PayPal's mobile payment strategies to his
non-PayPal computer just days before leaving PayPal for Google.
"By hiring Bedier, with his trade secret knowledge of
PayPal's plans and understanding of Google's weaknesses as
viewed by the industry leader (PayPal), Google bought the most
comprehensive and sophisticated critique of its own problems
available," the suit said.
Google spokesman Aaron Zamost said the company had not yet
received a copy of the complaint would not be able to comment
until it has had a chance to review it.
Google and PayPal have done battle in the recent past in
online payments via computers with the launch of Google Checkout
in 2006, but Checkout has had a minimal impact on PayPal's
The suit was filed at Superior Court of the State of
California, county of Santa Clara, Case No: CV20l863.
(Reporting by Yinka Adegoke, additional reporting by Jennifer
Saba; Editing by Gary Hill, Bernard Orr and Matt Driskill)