The Constitutional Court has rejected Vodafone’s attempt to intervene in the long-running Please Call Me case between Vodacom and Kenneth Makate. This follows a prior decision last week, where Vodafone’s bid to join the case was dismissed.
The Constitutional Court reviewed Vodafone’s application to participate as amicus curiae—a “friend of the court,” or a non-party offering information or expertise—and ruled against it. The court stated that Vodafone had not presented sufficient grounds to be admitted in this capacity.
The Origins of the Please Call Me Dispute
The dispute has its roots in a concept developed by Kenneth Makate, who was a trainee at Vodacom in 2000 when he came up with the idea for the Please Call Me service. His idea became the foundation for a significant feature in mobile communication, but he was soon drawn into a legal battle over rightful ownership.
The conflict escalated when Vodacom’s former CEO, Alan Knott-Craig, falsely claimed in his autobiography that he had invented the concept. Makate initiated legal proceedings against Vodacom in 2008, seeking rightful compensation for his intellectual property.
After years of legal wrangling, the Constitutional Court ruled in Makate’s favour, ordering Vodacom to negotiate fair compensation. This landmark ruling was a significant milestone in South Africa’s corporate legal landscape, as it underscored the rights of inventors and innovators within large corporations.
R20 Billion Demand vs R10 Million Offer
Makate’s legal team initially demanded R20 billion in compensation, arguing that the Please Call Me service had generated over R200 billion since its launch. This figure was based on the widespread use and financial success of the service.
However, Vodacom did not agree with this valuation. After being ordered to compensate Makate, Vodacom offered him R10 million, which he promptly rejected. The company’s CEO, Shameel Joosub, and his team developed four financial models to estimate a fair amount for Makate. The model with the highest value suggested R47 million, which Vodacom then offered, but Makate rejected this offer as well.
“Makate called the rejection of Vodafone from court proceedings a ‘massive victory,’”
Vodacom’s Appeal and Supreme Court Involvement
In February 2024, Makate brought the matter back to the High Court, and it ruled in his favour once again. Unsatisfied with the outcome, Vodacom lodged an appeal, seeking to overturn the ruling. However, the Supreme Court of Appeal stepped in and made a notable judgment in Makate’s favour, ordering Vodacom to compensate him with a percentage of the revenue generated from the Please Call Me service over an 18-year period.
The court decided that Makate should receive between 5% and 7.5% of the revenue generated during this time, a sum that could range between R28.9 billion and R55.3 billion. This decision underscored the massive financial impact of the service and the potential compensation Makate could rightfully claim.
Vodafone’s Exclusion and Further Legal Proceedings
As the legal battle continues, Vodafone, the UK-based parent company of Vodacom, sought to join the case, potentially to provide further expertise or influence the proceedings. However, Makate’s legal team opposed this move, and in June, they succeeded in preventing Vodafone from joining the case. The Constitutional Court has now confirmed this exclusion.
Makate is still pursuing compensation based on a 2020 claim amounting to R9.7 billion. This claim is central to the ongoing negotiations and legal arguments as he continues to seek what he believes is a fair settlement for his creation of the Please Call Me concept.
