Google Responds To PayPal Lawsuit

 Google on Friday said it will defend itself against allegations by PayPal that the Internet search giant and two of its executives stole trade secrets to develop its mobile payment system.

PayPal's lawsuit came on Thursday, hours after Google announced its mobile payment system Google Wallet and laid out plans to bring together all parts of retail experience on smartphones.

"We respect trade secrets and will defend ourselves against these claims," said Google in a statement sent to media here.

The two executives named in the PayPal lawsuit are Osama Bedier and Stephanie Tilenius, two ex-PayPal executives who now directly oversee Google's mobile payment initiative. Both were on stage in Thursday's introduction event held in New York.

PayPal said Bedier, who left the company in January, discussed a job with Google while simultaneously leading negotiations to make PayPal a payment option on Google's Android-based smartphones.

Bedier is alleged to have transferred the information about PayPal's mobile payment strategy to his computer before leaving the company.

Tilenius, who left eBay, PayPal's mother company in 2009, was under contract not to recruit PayPal employees. She is alleged to give advices to Bedier on a Google offering through Facebook messages, e-mails and text messages.

"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," said Google in the statement.

Google on Thursday introduced its mobile payment system Google Wallet, bundled with its coupon service Google Offers. The two services will allow consumers with Android smartphones to make payments or receive coupons and offers by waving the device in front of a special reader at the checkout counter.

Posted in: Google responds to PayPal lawsuit on alleged stealing of trade secrets