Vodacom Secures Legal Victory, Postpones Compensation to Inventor of 'Please Call Me' Concept
In a twist of events, South Africa's Constitutional Court has ruled in favour of Vodacom, overturning a 2024 Supreme Court of Appeal (SCA) judgment that had favoured Nkosana Makate. The court found "fatal shortcomings" in the SCA judgment and ordered the matter to be re-heard by a different panel of judges at the SCA[1][3][5].
The legal battle between Makate and Vodacom, which began in 2007, has now lasted over 15 years. The dispute revolves around the "Please Call Me" invention, a free message service that revolutionised the mobile industry. Makate originally conceived the idea while working at Vodacom in 2000[2].
Vodacom had initially offered Makate a compensation of 47 million rand (about $2.6 million), which he rejected. The SCA had ordered Vodacom to offer Makate between 5% and 7.5% of the total voice revenue generated from the "Please Call Me" service over two decades, based on Makate's model. However, the Constitutional Court set aside this order and sent the case back for reconsideration, citing procedural flaws in the SCA's ruling and lack of proper reasoning regarding Vodacom’s compensation offer[1][4][5].
Makate remains determined to secure a higher payout, stating his resilience despite the setback[1]. The man is demanding over US$500 million from Vodacom, arguing he is owed a cut, about 5-7.5%, of the billions Vodacom made off the service[1].
Vodacom welcomes the ruling as it delays any potential large payout. The court did not pin down the exact amount Vodacom should pay to Makate, leaving the payout amount undecided following the Constitutional Court's ruling[1].
The case highlights the challenges of getting paid for innovative ideas, especially when dealing with large corporations. Children born when the case started are now O-Level students[2]. The dispute is not yet resolved and awaits a new hearing at the Supreme Court of Appeal by a different panel[1][3].
[1] - News24 [2] - BusinessTech [3] - TimesLive [4] - IOL [5] - Fin24
The legal battle over the "Please Call Me" invention, a significant innovation in the mobile industry, has been a lengthy one between Nkosana Makate and Vodacom, spanning over 15 years. This dispute, which began within Vodacom's business world, has now entered the realms of finance, with Makate demanding over $500 million from Vodacom. Despite the recent Constitutional Court ruling that overturned a previous judgment and sent the case back for reconsideration, Makate remains resolute in his quest for a higher payout.
