PayPal suit a preemptive strike against Google – Mobile Commerce – Legal/Privacy
PayPal’s suit against Google claiming the latter misappropriated trade secrets reflects the urgency around being the first to market with a viable mobile payments solution.
Both companies are trying to build a presence for themselves in the growing mobile payments space, which industry believes has significant potential even though there are still a lot of unanswered questions about how it will work. In the suit, eBay-owned PayPal says it has been developing capabilities to provide large retailers with next-generation “mobile payment” point of sale technology and services and that Google is also exploring this market.
“I think the case has to be understood in the larger context of the rush to be the first to market with a viable mobile payments solution,” said David Carter, an attorney at ArentFox, NY.
“This is an area where the first-mover is going to have significant advantage,” he said.
There is a lot at stake here.