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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JAlexoid
Member since:
2009-05-19

They actively did work for PayPal while Google was trying to lure them away, at the same time that Google was actively trying to set up a partnership with PayPal. In addition, at least one of them actively worked for PayPal and Google at the same time according to the article. That's clearly a conflict of interest given that Google was planning a competing product. That one's not really even up for discussion.


Google and PayPal are essentially competitors for a long time now. Ever since Google created Google Checkout. Google couldn't have had conflict of interest, they are not representing PayPal. That person was not working for both at the same time, he was being interviewed by Google while leading the negotiations with Google.

Other point, is that we know for sure that the negotiations were about PayPal being used for Android Market, not mobile payments. Yet PayPal complains about mobile payments.

Not saying they set up a "fake deal". Only that actively working on a deal with a partner while at the same time, courting their top talent to come work for you, and then after you have managed to recruit their top talent, you back out of the deal and announce you are creating a competing product is shady at best. And possibly illegal. It's likely there were at least some contractual breaches here regarding conflict of interest on Google's part.


There can't be conflict of interest on Google part if Google isn't contractually defending PayPal's interests. PayPal's negotiator had a conflict of interest, not Google.

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