Landmark Victory for ‘Please Call Me’ Creator: Nkosana Makate Prevails in Compensation Battle Against Vodacom
Vodacom’s appeal against the compensation due to ‘Please Call Me’ creator Nkosana Makate has been dismissed by the Supreme Court of Appeal. In a significant victory for Makate, the court ordered Vodacom to pay him between 5 and 10% of the total revenue generated by the service over the past 18 years. The ruling comes after a long battle between Makate and Vodacom, which began in 2000 when Makate, a former Vodacom employee, developed the innovative ‘Please Call Me’ feature.
The ‘Please Call Me‘ service, launched in 2001, allowed Vodacom subscribers to send a free text message to another user on the same network, requesting a call. Makate came up with the idea when he was in a long-distance relationship, as communication was challenging at the time. Vodacom initially promised Makate compensation for his invention but reneged when the service became a success.
After years of legal proceedings, the Constitutional Court ruled in Makate’s favour in 2016, ordering Vodacom CEO Shameel Joosub to determine fair compensation for Makate. However, Makate rejected Vodacom’s initial offer of R47 million, considering it far too low. Judge Wendy Hughes supported this view, deeming the amount conservative for what she described as a brilliant invention.
The Supreme Court of Appeal’s ruling now requires Vodacom to make a new offer within 30 days, taking into account 5% to 7.5% of the total product revenue, as well as the time value of money calculated at an interest rate of 5% per year from March 2001 to February 2019. This decision has been a blow to Vodacom, which is South Africa’s largest mobile operator.
Vodacom has expressed disappointment with the judgment and plans to appeal to the Constitutional Court.
Makate’s victory is not only a personal triumph but also a significant development for protecting intellectual property rights in South Africa. It sends a message to companies that they must honour their promises to employees who create innovative and valuable concepts while under their employment. As the battle continues, all eyes will be on the Constitutional Court to see how it judges this landmark.
