The protracted battle between Nkosana Makate, the inventor of the “Please Call Me” (PCM) service, and Vodacom, South Africa’s largest mobile network operator, has returned to the Constitutional Court. This marks the second time Makate will argue his case before the apex court as he seeks fair compensation for his groundbreaking invention.
Makate’s journey for justice spans nearly two decades.
The PCM service, which allows users to send a free call-back message, has reportedly generated billions in revenue for Vodacom.
Despite the innovation’s success, Makate has yet to secure a payout he deems fair for his intellectual property.
A landmark ruling and a fresh battle
In a pivotal judgment on February 6, 2024, the Supreme Court of Appeal (SCA) dismissed Vodacom’s appeal and ordered the telecom giant to compensate Makate with between 5% and 10% of the revenue PCM generated over 18 years.
The ruling effectively set aside Vodacom’s previous offer of R47 million, which Makate rejected in 2019 as an insult.
Makate is also seeking to be paid R9.4 billion.
Now, Vodacom has returned to the Constitutional Court, seeking to overturn the SCA ruling.
The stakes are immense, with Vodacom alleging in court papers that the SCA’s ruling is vague and could result in payouts as high as R29 billion to R63 billion, amounting to between 12% and 30% of the company’s market value.
A long history of disputes
In 2016, the Constitutional Court ruled in Makate’s favor, finding that Vodacom executives had sought to “write [Makate] out of the ‘Please Call Me’ script “.
The court stated: “Having rejected Mr Alan Knott-Craig’s testimony for a number of reasons, the trial Court held that, for unexplained reasons, both Mr Knott-Craig and Mr Philip Geisslers ought to “write the plaintiff out of the ‘Please Call Me’ script for financial and other reasons”.
The court ordered Vodacom to negotiate compensation in good faith, appointing Vodacom CEO Shameel Joosub as the deadlock-breaker.
The subsequent negotiations failed, culminating in Joosub offering R47 million, which Makate refused. Makate then took the matter to the High Court, which ruled in 2022 that he was entitled to at least 5% of PCM revenue.
The SCA later confirmed the High Court’s decision, instructing Vodacom to use Makate’s revenue models to calculate the owed amount. However, Vodacom argued that the SCA’s ruling was unworkable and unlawful.
Makate’s perspective
Makate remains resolute.
Speaking to The Sunday Times, he expressed confidence in his case and criticised Vodacom’s legal expenditures.
I think Vodacom has spent over R100m on this case, if not more… I’d be shocked if it [the cost] doesn’t exceed R200m,”he said. “For Vodacom to spend the amount of money they have on this case to safeguard themselves from a R47m payout is nonsensical.”
Makate’s team has enlisted international experts to bolster their arguments, emphasising the seriousness with which they approach the matter.
Timeline of the case
- 2001: Makate invents the Please Call Me service while employed at Vodacom.
- 2008: Makate initiates legal proceedings against Vodacom, claiming he has not been compensated.
- 2016: The Constitutional Court rules in Makate’s favor, ordering Vodacom to negotiate fair compensation.
- 2019: Vodacom offers Makate R47 million, which he rejects.
- 2022: The High Court rules Makate is entitled to at least 5% of PCM revenue.
- February 2024: The Supreme Court of Appeal dismisses Vodacom’s appeal and orders compensation of 5% to 10% of PCM revenue.
- November 2024: Vodacom returns to the Constitutional Court to challenge the SCA ruling.
The Constitutional Court now faces the critical question: will it uphold the SCA’s decision or provide Vodacom relief? The outcome will determine whether Makate finally receives a payout reflecting the immense value his invention brought to Vodacom.
Makate vs. Vodacom: Six Reasons Why Vodacom’s Appeal Should Be Dismissed
By Gugu Lourie
Vodacom is once again seeking to challenge its obligation to fairly compensate Nkosana Makate, the inventor of the lucrative Please Call Me service, which the telco has used for over 23 years to generate billions.
Despite the Supreme Court of Appeal (SCA) ruling in February 2024 that Vodacom should pay Makate 5%-7.5% of the revenue generated by Please Call Me over 18 years, Vodacom is heading to the Constitutional Court to appeal the decision.
Vodacom – owned by British mobile giant Vodafone – is challenging SCA ruling, which rejected the R47 million compensation offer made by CEO Shameel Joosub to Makate in 2019.
The apex court (the Constitutional Court) is set to hear the matter on 21 November 2024,
“Despite a protracted legal battle to establish the existence of a contract and his entitlement to a share in the revenue generated by Please Call Me, Vodacom continues to resist Mr Makate’s claims,” argues Makate counsel.
Continued attempts over the years to undermine his case are possibly rooted in racism, that lingering ghost of apartheid
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.”..
GUGU LOURIE: Vodacom, please call Makate, it’s overdue
The telecoms giant is casting a stain on the integrity of SA business
Sixteen years is a very long time. If the long legal battle between “Please Call Me” inventor Kenneth Makate and telecommunications giant Vodacom were a child, it would now be of legal age with an identity document.
Makate, once a Vodacom employee, conceived the Please Call Me (PCM) service in 2001 — a groundbreaking idea that generated billions for Vodacom. Yet, despite his contribution, he finds himself locked in a relentless legal struggle for fair compensation…
