Kenneth Nkosana Makate and Vodacom Halt ‘Please Call Me’ Negotiations as Constitutional Court Reviews Case

Kenneth Nkosana Makate and Vodacom have paused their negotiations over compensation for the ‘Please Call Me’ invention while awaiting the Constitutional Court’s decision on whether it will hear the mobile operator’s appeal. The long-standing legal battle between Kenneth Nkosana Makate and Vodacom over the ‘Please Call Me’ service has hit another pause. Both parties have suspended their negotiations pending the Constitutional Court’s decision on whether it will hear Vodacom’s appeal.

Inquiries by MyBroadband revealed that there have been no recent developments in the negotiations, which were reopened in February 2024. Makate’s legal team confirmed that talks are on hold until the Constitutional Court’s decision.

This pause in negotiations marks yet another chapter in the prolonged dispute that has been ongoing for over 16 years. The Constitutional Court had previously ruled in favor of Makate in 2016, stating that Vodacom owed him compensation for his invention.

The ‘Please Call Me’ service, which allows users to send a free message requesting a call back, was conceptualized by Makate while he was a trainee accountant at Vodacom. In November 2000, Makate pitched the idea to his superiors, and by March 2001, the service was launched.

Despite the service’s success, Makate’s request for compensation led to a series of legal battles. In 2016, the Constitutional Court found that Vodacom was obligated to negotiate a reasonable compensation with Makate, recognizing his right to remuneration for his idea. The ruling overturned earlier decisions by the High Court and Supreme Court, which had dismissed Makate’s claims.

The negotiations that followed were fraught with disagreements. While Makate initially demanded R20 billion, Vodacom countered with R10 million. Ultimately, Vodacom’s CEO Shameel Joosub, acting as the designated deadlock breaker, offered Makate R47 million in January 2019. Makate rejected this offer, calling it “shocking” and “an insult.”

This rejection led Makate to seek further legal recourse. The High Court and subsequently the Supreme Court of Appeal (SCA) both ruled in favor of Makate, directing Vodacom to use a revenue share model to calculate Makate’s compensation over an 18-year period. This ruling was estimated to amount to between R29 billion and R63 billion, a figure Vodacom has contested.

Vodacom has since applied to the Constitutional Court for leave to appeal, arguing that the SCA’s orders were vague and legally unenforceable. Additionally, Vodafone, Vodacom’s parent company, has sought to join the case as amicus curiae, a move opposed by Makate’s team.

Makate maintains that the compensation should be around R9.7 billion, a figure he proposed during earlier proceedings in the Pretoria High Court.

As the Constitutional Court deliberates on whether to hear Vodacom’s appeal, the outcome of this high-stakes battle remains uncertain. The case continues to highlight the complexities of intellectual property rights and compensation within the corporate landscape.