Google Vice President of Payments Osama Bedier demonstrates how Google Wallet will work during a news conference, Thursday, May 26, 2011, in New York. Google wants the smartphone to be the wallet of the future, a container for digital credit cards, coupons, receipts and loyalty cards that can be "tapped" to terminals in stores. (AP Photo/Mary Altaffer)

Alleging that trade secrets were stolen and disclosed, PayPal is going after Google in a big way: suing the company and two former employees at the search giant who are key executives behind Google Wallet, launched with huge fanfare on Thursday.

PayPal is not only suing Google, but “two former colleagues who now work there, Osama Bedier and Stephanie Tilenius,” Amanda Pires, the senior director of PayPal global communications, wrote on the PayPal blog. According to the lawsuit filed by PayPal and parent-company eBay, vice president of platform, mobile and new ventures Bedier left PayPal in January to take up a “similar role at Google.”

Tilenius meanwhile left the company in 2009 as the senior vice president of North America and global products, taking up the role of president of electronic commerce at Google.

Urging readers to read the lawsuit themselves “see why we believe the law has been violated, and why we needed to take this action to protect PayPal’s trade secrets,” the lawsuit specifies that “over the past year, PayPal has been developing capabilities to provide large retailers with next generation “mobile payment” point of sale technology and services. Recently, Google has also been exploring the market for next generation mobile payment point of sale technology and service,” and that Bedier has helped them along by “misappropriated PayPal trade secrets by disclosing them within Google and to 9 major retailers.”

Tilenius’ crime, alleges PayPal, was to recruit Bedier from their former employer.

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