Google unveiled Google Wallet yesterday, and it’s already gotten the company a lawsuit. It comes from PayPal, and names two Google executives – Osama Bedier and Stephanie Tilenius, both of which used to work at eBay, and worked on extensively on PayPal.
The suit has actually been in the works for some time, and alleges that Bedier stole confidential information from PayPal and that Tilenius violated contractual obligations. Bloomberg reports:
PayPal also alleges that 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 Market. He didn’t disclose the job-related talks, a breach of his fiduciary duty, the company said.
Tilenius, who left EBay in 2009, was under contract not to recruit employees, PayPal said. She messaged Bedier on Facebook Inc.’s social-networking Web site, telling him she had a “HUGE” opportunity for him, and sent him e-mails and text messages offering advice while he interviewed for a position, according to the complaint.
The suit itself says Bedier “is now leading Google’s efforts to bring point of sale technologies and services to retailers on its behalf,” and that “Bedier and Google have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers.”
Google Wallet lets users store credit cards, coupons, loyalty, and gift cards on a smartphone, and uses near field communication technology, enabling tap to pay functionality. Google has partnership with Citi and MasterCard in place.

It has been well established that competition in the mobile payments space is going to continue to get fiercer, and with Google officially in the game, things are already getting much more interesting. Wait until Apple and Facebook make their marks in physical world payments. And let’s not forget Square, which just launched Card Case, which allow consumers to use tabs for payments.
PayPal, a leader in the payments space, needs to break out every line of defense it can as the industry in which it’s been pretty comfortable in for quite some time is becoming greatly disrupted at a rapid pace. Tricia Duryee at All Things Digital brings up an interesting point, saying that PayPal is on track to become bigger than its parent company eBay.
Google has yet to comment on the suit.
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Filed under Internet Marketing by on May 27th, 2011.
Today, CNN reports that plans may be in the works for popular app makers UberMedia to form their own social network rival to Twitter that “could compete with that popular microblogging platform.”
CNN cites three people who have been briefed on the plans as its source. From CNN:
The service would seek to attract users by addressing common complaints about Twitter, such as its restriction on the length of a message and how it can be confusing to newcomers, according to these sources, who were not authorized to speak publicly about the plans.
If you aren’t familiar with UberMedia, they are a California based company that develops third-party applications for Twitter and other social media. Their apps, which include UberSocial, Echofon and Twidroyd, allow users to interact with Twitter without using the official Twitter applications or the Twitter website. Many people prefer UberMedia’s interface and features to the official Twitter products.
UberMedia has a healthy share in the Twitterverse, according to a report issued by Sysomos last month. They analyzed over 25 million tweets in one day and reported that non-official Twitter clients were responsible for 42% off all tweets. Of that chunk, UberMedia’s UberSocial, Echofon and Twidroyd were responsible for 27.4% of the tweet volume.
There have been issues between Twitter and UberMedia in the past, as Twitter suspended UberTwitter and Twidroyd in February. The apps were later reinstated, and UberTwitter became UberSocial. In March, Twitter’s Ryan Sarver posted a message to third-party developers that warned them to steer clear of developing apps that “mimic or reproduce the mainstream Twitter consumer client experience.” This message was issued in conjunction with an update to Twitter’s terms of service regarding their API access.
It’s not likely that a new social network similar to Twitter could realistically compete with its dominance anytime soon. Twitter just reported that they were up to 155 million tweets a day.
UberMedia does however have plenty of users who enjoy their apps, and loyal clients could move over to a new network, especially if they have problems with basic Twitter constructs like the 140 character limit.
“Our foremost desire is to continue to innovate on the Twitter platform and bring more users and usage to Twitter,” UberMedia CMO Steve Chadima said in a statement to CNN
Is it possible that UberMedia could build a successful social network to rival Twitter? Would you use it? Let us know what you think.
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Filed under Internet Marketing by on Apr 13th, 2011.







