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Nkosana Makate's Long-Running Dispute with Vodacom Over "Please Call Me" Invention Continues

Strategic Insights

— 2 min read

After more than two decades, Nkosana Makate's fight for compensation for his innovative "Please Call Me" (PCM) invention will head back to court in November. Makate has expressed his dissatisfaction with the Constitutional Court's recent ruling, which upheld Vodacom's application for leave to appeal and awarded costs against him. He believes that the new hearing in the Supreme Court of Appeal will bring finality to this matter and allow him to receive the compensation he feels he deserves. Despite Vodacom's claims that the invention's commercial value was limited to two months, Makate maintains that the CEO's determination of a 5% revenue share and the subsequent court rulings justify a compensation amount of between R28 billion and R110 billion.

Key Takeaways:

  • The Supreme Court of Appeal will review the case and potentially re-evaluate the compensation amount for Makate's "Please Call Me" invention.
  • Makate disputes the Constitutional Court's decision to award costs against him, citing his defense of Amicus Curiae applications from Vodafone and Yebo Yethu.
  • The original Constitutional Court ruling stated that the Supreme Court of Appeal must conduct a new hearing by different judges.
  • Vodacom maintains that it would not have entered into an 18-year contract with Makate for the use of the invention.
  • Makate estimates that his entitlement to 5% of revenue generated over 18 years would amount to between R28 billion and R110 billion.
  • The R47 million offered by Vodacom in 2016 is a fraction of what Makate believes he is entitled to, given the CEO's determination of a 5% revenue share.
  • The invention's commercial value, according to Vodacom, was limited to a two-month period between 21 November 2000 and January 2001.

Statistics:

  • R13 million: The collective legal bill for one day's arguments in the Constitutional Court.
  • 18 years: The period over which Makate believes he should be compensated for the use of his invention.
  • 5-7.5%: The percentage range of revenue generated over 18 years that the Supreme Court of Appeal initially determined Vodacom should pay Makate.
  • R47 million: The offer made by Vodacom's CEO in 2016, which Makate rejected as undercompensation.
  • R28 billion: The lower end of Makate's estimated compensation range, based on his calculations and the CEO's determination.
  • R110 billion: The upper end of Makate's estimated compensation range.
  • 2 months: The period of commercial value for the invention, according to Vodacom.

Sources:

  • "Nkosana Makate and Vodacom face off again over Please Call Me invention" (Business Day, date not specified)
  • "Constitutional Court rules in favour of Vodacom, against Makate" (Business Day, date not specified)
  • "Vodacom's CEO on the R47 million offer to Makate" (Business Day, date not specified)
  • "Makate slams ConCourt's decision on costs order" (Business Day, date not specified)
  • "R13m bill for Constitutional Court arguments" (Business Day, date not specified)
  • "Please Call Me inventor rejects Vodacom's R47m offer" (Business Day, date not specified)

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