eBay sues Google alleging theft of trade secrets over Google Wallet mobile payments

“After Google unveiled the Google Wallet Near Field Communication mobile payment service on Thursday, eBay and subsidiary PayPal filed a lawsuit alleging the project’s team lead stole trade secrets to create the service,” Josh Ong reports for AppleInsider.

“Mountain View, Calif.-based Google showed off the new mobile payment Android app at an event in New York City Thursday. Google Wallet utilizes virtual cards, such as a Google Prepaid Card, to ‘tap to pay’ via NFC technology,” Ong reports. “CitiBank will participate as an early partner, as the service will support all Citi MasterCards at launch. Google Prepaid Cards can be topped up with any existing credit card. Eventually, the service will support loyalty cards, gift cards, receipts, boarding passes, tickets and even keys.”

Read more in the full article here.

Electronista reports, “eBay and its payment wing PayPal immediately followed up the launch of Google Wallet by suing Google and two executives for allegedly stealing trade secrets to help create the mobile payment technology.”

“The online auction house accused Google’s Wallet project lead Osama Bedier of feeding confidential PayPal information to Google to help it create the NFC mobile payment system and of making former eBay executive Stephanie Tilenius break a contract by having her join Google as its VP of commerce in February 2010, a month before she finished a consulting contract with eBay that had followed her exit from full-time work,” Electronista reports. “Bedier also supposedly tried to poach PayPal employees while he was at Google.”

Read more in the full article here.

32 Comments

  1. It’s Skyhook vs Google all over again: Google contacted PayPal to “provide them” with the means of integrating PayPal in the Android Market, and ended up taking all the information and work, poaching PayPal’s employees, using them to get trade secrets, and to add insult to injury, to steal their clients…

    1. Google has a nefarious tendency to steal intellectual property whenever it is given a bird seat in a project. It goes way back to before PayPal and Skyhook, it goes back to the development phase of Android where Eric Schmidt’s privileged position as a board member of Apple allowed him to steal many iPhone conceptual ideas from Apple. 

      For the life of me I can’t think why Apple would waste lawyers fees and time pursuing a 13 year old kid in New York for a pittance when it leaves Google alone to rape and pillage the iOS platform by rolling out derivative Android  software and hardware (Nexus One & Two).

      1. other than apps and Icons (found in virtually every operating system) what does Android steal from IOS. Wait, they stole the from factor of a rectangle, no the idea of a touch screen thats it google stole the idea of a touch screen.

        1. They stole ideas relating to the display of icons in an array on the screen that didn’t require you to recalibrate the screen because the way it was displayed on tbe screen relative to its size gave the OS a good idea of where your finger was touching.

          They stole the idea of a capacitive screen in that small changes in surface voltage gave the OS a clue as to where your finger is relative to your intentions. In other words they had to build in a predictive component to ensure that a touch triggered the appropriate onscreen response and more importantly to reject what would be considered an incorrect touch that did not interpret the user’s intentions.

          If you think that the original iPhone was just a simple collection of touchscreen technology you’re more delusional than you think. The R&D required to compress the chip into a small enough form factor without resulting in Microsoft’s big ass table is quite remarkable.

          Apple built on its expertise on ARM technology that powered its iPod line to create the iPhone.

          Google came along, had privileged access to Apple’s idea labs and stole the IP. No wonder Android draws the stupid crowd if you’re anything to go by.

          1. So your first argument is that Apple or some other company invented geometry?

            Apparently the humble Array is some groundbreaking new invention.

            Google didn’t steal the idea of using Capacitive input on a screen. Thats a whole other realm involving electrical engineering not a bunch of linux developers.

            Capacitive input have been around for ages.
            Really the current state of mutli-touch is the bringing together of multiple fields of research into a single form.

            Apple didn’t invent it, they bought one of the companies who was pushing the farthest into the field back in 2005.

            Why do you think so many companies have been able to make displays and support multi touch without paying heavy fees to anyone?

            Most of the patents have long expired that’s why!

            1. The novel idea was not capacitive input but rather capacitive input that responded to touch that gave a fine granularity to finger gestures. 

              If you don’t understand what I mean then take touch technology going back before the iPhone. You first had to calibrate the screen by using the point of the stylus to confirm the part of the screen you were touching. That required a precise input. Then manipulating objects around the screen had to be rethought to accommodate finger gestures. These are non-trivial problems. 

              Microsoft battled it for years requiring a stylus for precise input. Apple rewrote the rulebook by first dispensing with screen calibration and then by removing the stylus. I repeat these are non-trivial problems from a software development perspective.

        2. do u think those linux geeks at Google would invent “pinch-and-zoom” if Schmidt didn’t see it first at Apple ? those doofuses prefers to do everything via overly complex menus that provides every feature under the sun, and none implemented well.

          Witness iPhone vs. iPad – Schmidt saw the iPhone, so Android phone copied everything that made iPhone a success and has higher total sales. Schmidt was blocked from seeing iPad, and Android tablets aren’t going anywhere at all.

          1. android tablets are not going anywhere for now, as soon as sub 400 quality tablets start hitting the market Android will take over market share. Isheep, isheep, 1 os + free OS+ many manufacturers= Market domination it will always be like this get over it. Apple will make its money because of their genius in marketing, specifically selling its products 2-3 times over market value.

            1. That’s the reason why Google’s free technology will lead Google down the path to the toilet that RIM is facing even faster than you think. You do realise don’t you the contradiction in what you said. Google gives away Android for free yet expects to thrive in its propagation. Stupid is as stupid does. You ever watched ‘Dumb & Dumber’? That’s Google in a nutshell for you, troll.

              Just because a hardware is prevalent doesn’t mean it’s making money. So why do you think HP is reshaping itself into a services company. It sells 10x more PCs in a quarter than Apple does.

              What happens when Android manufacturers are squeezed at the low end by generic Chinese manufacturers who fork Android to use Bing or Baidu as a search engine. Google and its cohorts will be doubly raped – in the ass both ways.

              Enjoy your virus ridden piece of shit, troll.

            2. . That’s the reason why Google’s free technology will lead Google down the path to the toilet that RIM is facing even faster than you think. You do realise don’t you the contradiction in what you said. Google gives away Android for free yet expects to thrive in its propagation. Stupid is as stupid does. You ever watched ‘Dumb & Dumber’? That’s Google in a nutshell for you, troll.

              Just because a hardware is prevalent doesn’t mean it’s making money. So why do you think HP is reshaping itself into a services company. It sells 10x more PCs in a quarter than Apple does.

              What happens when Android manufacturers are squeezed at the low end by generic Chinese manufacturers who fork Android to use Bing or Baidu as a search engine. Google and its cohorts will be doubly raped – in the ass both ways.

              Enjoy your virus ridden piece of shit, troll.
              ________

              You mad lol.

              Google makes as much money on ios as it does Android idiot. Google’s end goal get as many people on the web as possible, more people on the web more advertising money for google, the only reason why google has android is because it does not need to pay to put its products on android. Google is all about advertising. Android has help google maps reach 200 million mobile users, they use google maps see how good it is so they will use other google products. yes because we know Chinese electronic manufacturers have giant fan bases outside of China lol.

              you mad lol

            3. Look I have no time to refute your shit except show me hard evidence that ‘Google makes as much money from Android as Apple does from iOS.’

              Google captured $500 million turnover from Android last quarter. Apple made $7 billion on the sale of iPhones alone. So I’d fuck off with your crap if I were you dumbass.

            4. Same BS reasoning that backed every iPod ‘killer’ But its cheaper, its going to slaughter iPod just cause its cheaper, everyone will want one soley based on the cheaper price point.

              We’ve come a long way, people recognize and want, even demand quality. Most realize that value such as ease of use, it just works, intuitive and consistent UI, plus easy to access eco-system and integrating capability is far more than just a price point.

              As for your ridiculous 2-3x over ‘market value’ you seem to be glossing over how the wanna-be 7 inch tablets are as expensive or more than the least expensive 10″ iPad.

              Go troll under someone else’s bridge

            5. While I mostly agree with you, BLN, you lacked a bit of reading comprehension: Stevelordandsavoir said “Google makes as much money on ios as it does Android….” He did NOT say that Google makes as much from Android as APPLE makes from iOS. You actually put quotes around your misquote – not good form. He then went on to explain Google’s motivation to get many people on the web, in whatever fashion, further reinforcing his point that Google doesn’t necessarily want to see iOS fail.

              It’s always good to read what someone read, and if you’re going to quote them to refute what they said, make sure you don’t make up false quotes.

              I think Stevelordandsavoir is wrong overall and you are right overall, but I’d prefer an accurate debate where we don’t make up things about our opponents. Call me crazy.

    2. Skyhook vs. google?

      this is nothing even remotely related.

      Skyhook was attempting to disable the default location module in Android and replace it with their own. This would lead to more of what everyone wants to cry about on these forums, you know, fragmentation.

      This is eBay accusing them of poaching employees and trade secrets.

      Two very different situations.

      1. Skyhook did not attempt to disable anything. Google contacted Skyhook to provide them with a solution and was delivered exactly what they asked for. Nothing more, nothing less. Google’s true motives were later revealed to be to appropriate their technology, steal their clients, and never intended to sign a deal in the first place. Which is a repeat with PayPal now.

        1. Dude are you talking about?

          The lawsuit is just starting! Nothing has been ‘revealed’ yet – the thing has not even gone to trial.

          All we know at this point is what both parties are claiming.

          Skyhook is claiming that Google is attempting to block Skyhook on a moto device with Android compatibility clauses. They believe that is not fair.

          Google is claiming Skyhook disabling Google Maps on Android creates an inconsistent API and breaks Android compatibility.

      2. Your analysis of Skyhook is not borne out by the facts.

        Motorola contracted Skyhook to provide location finding technology that utilised a combination of GPS and tower triangulation. The technology is quite complicated as the distance to the tower is not always correlated to signal strength. 

        Manufacturers that require Google to sign off their hardware implementation must submit to a review process so Google reviews the embedded Android software in combination with third party software that is incorporated in the OS which a manufacturer is free to modify subject to Google’s guidelines.

        When Larry Page came across the review process his comments were ‘Why are we not on top of this at Google?’ The implication being that Skyhook was locking Google out of a lucrative search market that leverages off location specific advertising.

        Read the original court submissions and buy a clue before spouting.

        1. I HAVE read them.

          Its called a “complaint and jury demand” – Its how one party (the plaintiff) views the events (since they are ones suing).

          it points out exactly what I said, Skyhook was going to disable google’s loation services. Why else would they contend in their own complaint that it would be a massive overhaul of the software to run XPS and Google Maps ‘sidebyside’ ??

          That’s neat that they assume that Google just wanted to pull data off of XPS, and maybe that is true. It does not change the fact that Google Maps is a core component for making your platform ‘Android compatible’. The Maps API is available to any developer via the Android SDK. Removing it will create more fragmentation.

          As far as FACTS ? That is what a jury will decide! A court filing is hardly FACTS. If it was there would be no reason for a trial.

          At this point the only fact we can pull out of all of this is that your interpretation of the lawsuit complaints are different than mine.

  2. Do no evil my ass…

    Does Google do any original work these days, or are they the 2nd coming of Micro$oftopoly- stealing, subverting, and undermining competitors and business partners?

  3. On the face of it, if eBay’s claims are true, this ranks Google as a very low form of life. These bastards think they are so big they can take whatever they like.

    1. here’s my take on the lawsuits anymore.

      Apple’s reputation:
      Lawsuit filed against Apple, odds are Apple didn’t do any wrong. or if they did, not intentionally.

      Google’s reputation:
      Lawsuit filed against google, Odds are google did it.

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