Vodacom Loses Appeal, Must Pay Please Call Me Inventor Millions More
Johannesburg, 6 February 2024: The Supreme Court of Appeal (SCA) has dismissed Vodacom’s appeal in the long-running legal battle with Nkosana Makate, the inventor of the wildly successful “Please Call Me” service. This ruling marks a significant victory for Makate and paves the way for him to receive substantially more compensation than previously offered.
Image Source: Image: Simphiwe Nkwali/Times Live
A Protracted Battle for Fair Compensation:
The saga began in 2000 when Makate, then a Vodacom employee, conceptualized the Please Call Me feature. Despite its massive success, initially generating billions of rands for Vodacom, Makate felt he was not adequately compensated for his invention.
This sparked a years-long legal battle, culminating in a 2016 Constitutional Court ruling recognizing Makate’s ownership of the idea and his right to fair compensation. However, subsequent negotiations and determinations on compensation proved contentious.
High Court Rejects Vodacom’s R47 Million Offer:
In 2022, Makate challenged Vodacom’s CEO-determined compensation of R47 million in the High Court. The court ruled in Makate’s favor, deeming the amount insufficient and ordering a recalculation based on a fairer methodology.
Vodacom appealed this decision to the SCA, arguing for the R47 million offer to stand. However, the SCA upheld the High Court’s ruling, dismissing Vodacom’s appeal with costs.
New Terms: 5-7.5% of Please Call Me Revenue:
The most significant aspect of the SCA’s judgment is the revised compensation framework. The court ordered Vodacom to pay Makate between 5% and 7.5% of the total voice revenue generated by Please Call Me over an 18-year period (2001-2019). This translates to a much higher payout than the initial R47 million, potentially reaching hundreds of millions of rands.
Vodacom to Determine Final Amount:
Vodacom now has 30 days to calculate the exact amount owed to Makate based on the SCA’s guidelines. While expressing disappointment with the ruling, Vodacom has indicated its intention to comply with the court’s order.
What it Means:
This case has been closely watched in South Africa, raising important questions about intellectual property rights, employee compensation, and corporate accountability. The SCA’s decision is seen as a landmark victory for inventors and a reminder of the importance of fair compensation for intellectual contributions.
It is important to note that this is a developing story, and the final amount payable to Makate could differ based on Vodacom’s calculations and potential further legal challenges.
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