The long-running legal battle between Vodacom and Nkosana Makate, the inventor of the “Please Call Me” (PCM) service, will reach the Constitutional Court on 21 November 2024.

In a notice of set down, the top court said: “Please take notice that the above matter has been set down for hearing on Thursday, 21 November 2024 at 10h00.”

Vodacom is seeking to appeal a previous ruling that ordered the company to pay Makate “fair compensation” for his idea, which was developed in 2001 while he was employed at the company. Despite the service generating significant revenue, Makate has been fighting for over two decades to receive appropriate payment.

In 2016, the Constitutional Court confirmed Makate as the inventor of PCM and entitled him to compensation. Vodacom’s CEO, Shameel Joosub, initially offered R47 million, which Makate rejected, considering it inadequate.

In 2022, the Gauteng High Court ruled against Vodacom’s settlement proposal, ordering a review. Vodacom appealed, but the Supreme Court of Appeal dismissed the case earlier this year, leading to the upcoming Constitutional Court hearing.

Makate’s pursuit of fair compensation continues as the case heads back to the highest court.

Also read: GUGU LOURIE: Top court must assert authority with final judgment in Makate vs Vodacom case

 
Nkosana Kenneth Makate, the inventor of Please Call Me.
Image: Gallo Images/City Press/Leon Sadiki

South Africa’s Constitutional Court appears to be failing Please Call Me (PCM) inventor Kenneth Nkosana Makate to resolve his 16-year legal battle for compensation from telecom giant Vodacom.

While employed by Vodacom, Makate developed the innovative PCM service in 2001, which raked in billions of rand for the company. Despite this significant contribution, the former Vodacom employee is still engaged in a relentless legal battle for fair compensation. On February 6 2024, the Supreme Court of Appeal (SCA) dismissed Vodacom’s appeal with costs.

The SCA further ordered Vodacom to pay Makate between 5% and 10% of the total revenue that the service generated over the past 18 years. However, Vodacom applied to the Constitutional Court for leave to appeal against the SCA judgment and subsequent settlement order. It appears that Vodacom’s move has served only to further delay the settlement of the matter.

Also read: Vodacom Criticises Makate’s “Please Call Me” Ruling As ‘Fundamentally Flawed’

Vodafone, the global telco based in London, has hit a legal stumbling block in its attempt to intervene in the long-running court dispute between  Vodacom and Nkosana Makate, the creator of the “Please Call Me” service.

Vodafone and Vodacom maintain a close relationship. Vodafone holds a significant stake in Vodacom. As of 2024, Vodafone owns 60.5% of Vodacom.

Vodafone’s request to join the case as Amicus curiae (a friend of the court) was denied, marking the latest twist in the drawn-out battle over compensation for the widely-used messaging innovation.

The letter to Vodafone reads in part: “The Constitutional Court has considered the application for admission as amicus curiae. It has concluded that the application should be dismissed as no case has been made out for admissionas amicus curiae. The Court has decided not to award costs.”

Supporters of the #PleaseCallMe movement protest outside Vodacom headquarters in Midrand in support of Nkosana Makate, in this January 31 2019 file photo, Picture: THULANI MBELE/SOWETAN

It is not in dispute that Nkosana Makate is the inventor of Vodacom’s Please Call Me service. Vodacom, which benefited immensely from Makate’s invention, must pay him what is due. Continued attempts over the years to undermine this fact are possibly rooted in racism, that lingering ghost of apartheid.

Nigerian-British writer Ben Okri once said: “What is reality? Everybody’s reality is subjective; it’s conditioned by upbringing, ideas, temperament, religion, what’s happened to you.”

Okri’s words ring true when examining the attempts by some to erase Makate’s rightful place in history — efforts largely expressed by white journalists, perhaps influenced by old prejudices. They have consistently published stories attempting to discredit Makate’s claim to the Please Call Me service, despite overwhelming evidence, including a Constitutional Court ruling in 2016 that declared him the inventor.

Vodacom was ordered by the apex court to enter into good-faith negotiations to determine fair compensation for Makate’s invention. Yet, the debate was reignited when Ari Kahn, a former MTN contractor, claimed in a radio interview that Makate did not own the rights to the service and therefore was undeserving of compensation. Kahn argued that MTN had filed a similar patent before Vodacom launched the service in March 2001.

Some continue to resurrect Khan’s claims without presenting any new evidence. What’s critical, however, is that Khan’s assertions and the efforts to discredit Makate have overlooked key court rulings. The Constitutional Court had already addressed the differences between MTN and Vodacom’s versions of Please Call Me.

Makate’s service was built around a USSD messaging system that was simple, efficient, and designed specifically to benefit prepaid customers with no airtime — a market Vodacom directly targeted. In contrast, MTN’s offering was based on an interactive voice response (IVR) system, which was more complex, expensive, and lacked a clear market focus.

Nkosana Makate. Picture: SIMPHIWE NKWALI

Makate’s idea, as the court noted, was not only innovative but patentable, and Vodacom benefited enormously from it. Moreover, the evidence of an American expert, Ivan Zatkovich, in Makate’s original trial further discredited Kahn’s claims. Zatkovich testified that the two systems were fundamentally different in their mechanics, business models and target markets.

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