Business & Finance

Massive Win for Kenneth Makate: Vodafone Denied Access in Ongoing Please Call Me Legal Battle

In a significant legal victory, Kenneth Nkosana Makate, the man behind the Please Call Me concept, has claimed a “massive victory” after Vodafone was denied permission to participate in the legal case as a “friend of the court” (amicus curiae). The Constitutional Court’s decision to exclude Vodafone marks a key moment in the long-standing dispute between Makate and Vodacom over compensation for the revolutionary service.

Vodafone’s Exclusion: A Blow to Vodacom’s Defense

Vodafone, the UK-based telecom giant that owns more than 60% of Vodacom, had attempted to enter the ongoing legal proceedings between Makate and Vodacom. The telecoms group aimed to offer insights in a neutral capacity, arguing it wasn’t directly involved in the dispute but could assist the court with expertise. However, the Constitutional Court disagreed, ruling that Vodafone hadn’t made a convincing case to qualify as a neutral third party.

Makate’s legal team firmly opposed Vodafone’s involvement, accusing the company of trying to sway the case in Vodacom’s favour. “Our argument was that being a controlling shareholder, Vodafone could not be an amicus, because it is a litigant in the matter through control of the Vodacom Group,” Makate explained. He described the ruling as a significant achievement, stating that Vodafone’s application was “tantamount to interference” in the South African judiciary.

Vodafone, meanwhile, insisted it had no intention of directly influencing the case. Nickola Vidovich, Vodafone’s chief legal director, argued that Makate had misunderstood the company’s role, emphasising that it only sought to provide context, not act as a primary litigant.

The Long Road to Justice: A Legal Battle That Started Over Two Decades Ago

Makate’s dispute with Vodacom traces back to an idea he proposed in November 2000. As a trainee accountant at Vodacom, Makate suggested what he called “the buzzing option” — a method that allowed users without airtime to send a missed call notification. While his original technical suggestion wasn’t feasible, Vodacom later launched a service called “Please Call Me” that allowed users to send a free SMS request for a call.

Although Vodacom initially thanked Makate for the idea, the relationship soon soured when Makate sought compensation. He originally requested 15% of the revenue generated from Please Call Me, which had become a massively popular service. In 2008, after failing to receive compensation, Makate sued Vodacom. Eight years later, South Africa’s Constitutional Court ruled that Vodacom and Makate had a verbal agreement regarding compensation, but did not specify the amount. The court instructed the parties to negotiate in good faith.

Initially named “Call Me”, Vodacom thanked Kenneth Makate for bringing the idea to the product development team.

Stalemate in Negotiations: From Billions to Insults

Negotiations between Makate and Vodacom have been anything but smooth. Makate’s team demanded R20 billion in compensation, while Vodacom countered with a drastically lower offer of R10 million. The Constitutional Court foresaw such a deadlock, instructing Vodacom’s CEO, Shameel Joosub, to act as the arbiter. Joosub proposed R47 million — an amount Makate deemed an “insult.”

After these negotiations failed, the case returned to court. The High Court ruled in Makate’s favour, a decision later upheld by the Supreme Court of Appeal (SCA). Vodacom is now appealing to the Constitutional Court, which will decide whether the appeal has merit.

The SCA had previously ruled that Vodacom must pay Makate between 5% and 7.5% of the revenue generated from Please Call Me over 18 years, with interest. Based on court calculations, this figure ranges between R29 billion and R63 billion — a staggering sum, particularly when considering that Vodacom’s total profit in 2023/2024 was R16.3 billion.

The Battle Continues: Compensation in the Billions

Makate maintains that Vodacom’s revenue calculations are flawed. His legal team argues that R9.7 billion, the amount sought during the Pretoria High Court hearings in 2020, is still valid. The Constitutional Court is now tasked with hearing Vodacom’s appeal, determining whether the telecoms company has grounds for a further hearing.

This case has drawn attention not only for its financial implications but also for its broader significance regarding intellectual property rights and corporate responsibility.

The Question of Invention: Who Really Created Please Call Me?

Though many hail Makate as the inventor of Please Call Me, another figure has also laid claim to the idea. Legal expert Ari Kahn, working on behalf of MTN, patented a similar service in November 2000, just days before Makate approached Vodacom. MTN launched its version of the service in January 2001, several weeks ahead of Vodacom’s rollout.

Kahn has publicly stated that Makate’s original idea, which involved a “buzzing” feature, was technically impossible. He argues that Makate’s concept bore little resemblance to the Please Call Me service Vodacom eventually implemented. Vodacom acknowledged MTN’s patent only in 2019, further complicating the narrative of invention.

Despite the conflicting claims of who first developed the service, South Africa’s Constitutional Court has determined that the question of invention is irrelevant. The court’s ruling focused instead on the verbal agreement between Makate and Vodacom management, and whether the managers involved had the authority to agree to compensation for Makate.

The Future of the Case

As the case continues, all eyes are on Vodacom and Makate. The Constitutional Court will soon decide whether to allow Vodacom’s appeal, but for Makate, the denial of Vodafone’s amicus application represents a significant victory in this long, drawn-out battle for justice.

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