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By 30 May 2011 | Categories: news

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Internet giant Google is once again in the spotlight, as online payment site PayPal Inc. recently filed a lawsuit against the multi-billion dollar company.

PayPal, a popular online transaction service, is part of Ebay Inc. and both claim that Google stole trade secrets from the company in relation to their mobile payment business.

PayPal alleges that one of its former executives, Osama Bedier, stole confidential company information and leaked it to his new employers at Google. Another former PayPal executive, Stephanie Tilenius, is also accused of violating contractual obligations by recruiting Bedier to join Google, Bloomberg reports.

Tilenius, who left EBay in 2009 and was under contract not to recruit employees, apparently contacted Bedier on Facebook, telling him she had a “HUGE” opportunity for him. She also sent e-mails and text messages of advice to him while he was interviewing, the complaint states.

The lawsuit, filed last week in state court in San Jose, California, alleges that Bedier is now, “leading Google's efforts to bring point-of-sale technologies and services to retailers on its behalf. Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers.”

The contested issue revolves around a new quick payment method known as NFC (near-field communication), a technology which is already present in Google's Nexus S smartphone. Utilising this technology users will be able to make transactions at restaurants, stores, or wherever else it's installed simply by swiping their smartphone almost like they would a credit card.

PayPal is currently working with major retailers in the US to develop this new technology and incorporate it into point-of-sale systems in storefronts nationwide. Just as customers are able to choose between cash or card payment, a third “swipe option” is now in the works.

Aaron Zamost, a Google spokesman responded in an e-mail statement that, “Silicon Valley was built on the ability of individuals to use their knowledge and expertise to seek better employment opportunities, an idea recognized by both California law and public policy. We respect trade secrets, and will defend ourselves against these claims.”

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