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Espionage EBay and PayPal Sue Google Joerg Sarbach / DAPD / AP Photos

EBay and PayPal Sue Google

Not everyone was excited about Google's new smartphone payment system, the Google Wallet. Ebay and PayPal are suing the tech giant for stealing trade secrets. Their case rests on two executives, Osama Bedier and Stephanie Teilenius, who left PayPal for Google shortly before the mobile payment system came into being. Ebay says PayPal and Google had been working closely together for three years on a deal where PayPal would serve as a payment option for Android phone users, and that Bedier was the senior PayPal executive finalizing negotiations with Google. But then on Jan. 24 of this year, Bedier quit PayPal for Google, days after transferring PayPal's mobile payment strategies to his non-work computer. “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," says the suit.

May 27, 2011 2:58 AM