Linked by Thom Holwerda on Fri 27th May 2011 21:50 UTC, submitted by sawboss
Legal Ding ding ding ding - I think we have a record here. Launched yesterday, Google Wallet has already attracted a lawsuit. While patent lawsuits are teh shizzle these days, this lawsuit is a little different, so sadly I can't trot out my usual 'software patents bad' lines (aww). PayPal has sued Google over its Wallet service, claiming that one key former PayPal executive who accepted a job at Google took trade secrets with him.
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PayPal brings a knife to a gunfight...
by JAlexoid on Fri 27th May 2011 23:33 UTC
JAlexoid
Member since:
2009-05-19

What stopped or is stopping PayPal from creating an app for Nexus S and NFC? I wonder what "secrets" could they have taken from PayPal that are applicable to mobile payments?.
The idea of a mobile payment? The Japanese have PayPal beat on that.
Google has Google Checkout. And Wallet adds only the GCard. Basically a publicly available feature of PayPal that has been copied by anyone and everyone.
Plans that PayPal wanted to become a mobile payments processor? How awareness of those plans helped Google?
I guess only the court will be able to answer those questions...

Sure, employees changing jobs like they did seems at least immoral.

Reply Score: 3

pantheraleo Member since:
2007-03-07

Well, with any software development job, you almost invariably sign an agreement that survives your departure from the company that says you will not share that company's trade secrets with a future employer. Actually, in most other states, PayPal would probably win. But courts in the state of California are often very unfriendly to non-compete clauses. It does seem like Google used some very underhanded business practices, and possible some illegal ones here though, to dupe PayPal into thinking they were going to sign a deal with them to use PayPal for online payments, luring some of PayPal's top talent away, then using that talent to develop their own competing service and backing out of the deal they had lead PayPal to believe they were going to sign with them.

This one's definitely going to be interesting. PayPal definitely has a legitimate case I think though.

Edited 2011-05-28 01:17 UTC

Reply Parent Score: 4

Vanders Member since:
2005-07-06

Well, with any software development job, you almost invariably sign an agreement that survives your departure from the company that says you will not share that company's trade secrets with a future employer.


Which in some cases is effectively a restriction on a persons ability to seek alternative work in a related position or area where they have the most expertise.

But courts in the state of California are often very unfriendly to non-compete clauses.


It's certainly more employee friendly, yes.

It does seem like Google used some very underhanded business practices, and possible some illegal ones here though


Why did you leap to that conclusion? All Google have done is to hire someone who used to work at another large company based in and around the Valley. That's hardly a rare or special event. Unless Google specifically asked Bedier to spill the beans and provide intimate knowledge of PayPal, they haven't done anything wrong.

dupe PayPal...luring some of PayPal's top talent away...backing out of the deal


Why would Google even bother to set up a "fake deal" in the first place? If they wanted to hire people to build Google Wallet they can advertise the positions, accept applications and hire suitable candidates. What benefit is it to Google to "pretend" to want to sign a deal? There is none.

Edited 2011-05-28 14:32 UTC

Reply Parent Score: 4