PayPal sues Google over Wallet

PayPal has filed suit against Google in California, claiming that the search company stole trade secrets from it's mobile payment business.

PayPal claims that after Osama Bedier, a former PayPal exec, was hired at Google, he misappropriated PayPal's business secrets to his new company and major retailers.

PayPal is also saying that another former employee, Stephanie Tilenius, violated her contractual obligations by hiring Bedier at Google. According to the lawsuit, Tilenius was under contract to not recruit eBay employees when she was hired by Google. PayPal is also saying that she told Bedier that she had a "HUGE" opportunity for him in a Facebook message; she also traded emails with him, and sent him text messages discussing the offer.

"Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers," the lawsuit reads. It also claims that while Bedier was talking to Google about getting hired, he was also leading the negotations to make PayPal a payment option on Android Market.

Both companies are both trying to develop new ways to pay for stuff in shops and other businesses, which is what the lawsuit is all about.

Google just unveiled two new services that aim to allow users to pay businesses using their mobile phone and redeem coupons, called Google Wallet and Google Offers respectively. PayPal is also working on a new point-of-sale system for businesses that would allow for payments to be made via PayPal in addition to swiping a card.

Google said that it could not comment on the lawsuit just yet, as it had not received a copy of the suit to review it.