We have a 7 yr old pug and we brought home a new pug. We use a pee pad in the laundry room for the dogs to use the bathroom. The new puppy has been here for about 4 weeks now and uses the pee pad all of the time. The only problem is she went on the older dogs bed. We had it in the living room at first but moved it to our bedroom after her peeing on it twice. We had kept all of the bedroom doors closed ( they are carpeted). We just started letting her follow us in the bedroom during the day now sometimes, but twice she has ran over and peed on the older dogs bed again ( the bed has been washed in the washing machine every time so there is no smell) I think this is a dominance problem, but I don't know how to stop it! Any answers?

Can I just ask why you are using pee pads?
Do you live in an apartment or somewhere your dogs do not have access outside?

It sounds like the new pup has developed a habit of thinking that the older dogs bed is the same as a pee pad.

I would suggest completely throwing out the old bed and buying a new one.
If you can't do this get a good enzyme cleaner and wash the older dogs bed (wash it several times) to remove any scent of urine from it.
Keep the pup away from the bed, even after being washed for at least a few days.

I am not a big fan of pee pads either, they really only lead to confusion.
I understand if it isn't possible to have them out side. Keep in mind that once you allow your dogs to start going to the bathroom inside then it is hard to make them understand to not just go anywhere.

So they see this dog bed, that smells like dog, maybe even a bit of urine smell on the dog bed, and they want to mark on it. Especially for the new dog, coming in, she wants to mark her smell on the house.
So I would go with Shazamataz's suggestionand either throw out or wash continuosly, but remember you can't really get too upset at her, she is only doing what she thinks is right.