Is Google (GOOG) Desperate For Money

Best Growth Stock – Google Inc (GOOG) usually stands very firm in being a user friendly and fair company. Lately the company under the direction of its founder Larry Page has been making some wild turns into being a desperate company burning cash at a very fast pace, copying the competitors and looking without success into diversifying its income.

Just a couple of months ago the company has been making the headlines but not due to innovation but controversy. The US Justice Department is making a formal investigation into their ranking algorithm after their counterparts in Europe are very advance in their investigation. Also, Google has been playing the not so nice company they preach with cases as they are being sued by Skyhook Wireless on business interference after Motorola was forced to cut a deal with Skyhook Wireless.

On the latest Google’s drama and PayPal and eBay have denounced two ex-executives, currently working for Google, by using the information on their mobile payment projects in the development of the platform Google Wallet.

Google, announced on Thursday that in the summer they will begin operating a service of wallet payment in the mobile sector, based on the technology of NFC wireless communication between your operating system Android phones and payment terminals in shops.

The text of the complaint, which was presented at the higher court in Santa Clara, California, the two companies accuse Google and Osama Bedier, which is currently at the forefront of the development of the platform for payment through mobile phone company, “appropriating” inadequately secrets and adapt them to Google Wallet.

The other person involved in the case is Stephanie Tilenius, former Executive of eBay who worked in the Division of e-commerce.

After studying the case, Google responded publicly in California that the company respects “trade secrets” and argued that “Silicon Valley was built on the ability of individuals to use their knowledge and experience to seek better opportunities of employment”. As nobody can argue against this statement it seems that Google is not responding to the real cases and it is did they used those executives knowledge gained from PayPal and eBay into developing their Google Wallet service. Are they copying other’s companies trade secretes?

In the PayPal blog, the Director of global communication of the company, Amanda Pires, points out that they tend not to “waste time” in the courts, but that some performances of the competition do that legal actions are the only measures to protect its secrets.

The report also explains that Bedier was responsible for the negotiations of PayPal with Google for the development of a paid service for applications in the operating system Android and that, in the meantime and without informing to their superiors, interviewed with the multinational from Mountain View to get a job.

According to PayPal, Bedier would have transferred to a personal computer updated versions of documents detailing aspects of the service of payment by mobile phone “just a few days before” of leaving the company to move by Google in January of this year.

Bedier, Vice President and head of the Division of PayPal Mobile, had “detailed knowledge” project of point of sale and payment by mobile phone, as well as strategies of business, concepts and procedures related to the service of wallet digital company, assured the applicant.

At the time that he copied documents, says PayPal, Bedier already intended to go to Google, which is why it is not a “legitimate reason” for obtaining updated information for the strategies of the company that was about to leave.

The complaint also gives details on the recruitment of the management during the process of negotiation between PayPal and Google payment for the purchase of mobile operating system Android applications.

For when the companies showed agreement on October 26, 2010, the Steering would have carried out a series of meetings with executives that would have culminated with a meeting on 21 October with the President of Google, Larry Page, and the Vice President, Jonathan Rosenberg.

After joining Google, Bedier would have been to hiring other “key employees” of PayPal with knowledge of the secrets of company, according to PayPal.

The complaint also includes messages from Facebook that Tilenius, who came to Google at the end of 2009, would have maintained contact with Bedier to convince him of working for Google.

The text includes nine cases against Bedier, Tilenius and Google, mostly for violation of contractual obligations and by inappropriate use of secret information.

The complaint requests compensation for the damage and also for intellectual property.