Johannesburg – Vodafone, the global telco based in London, has hit a legal stumbling block in its attempt to intervene in the long-running court dispute between Vodacom and Nkosana Makate, the creator of the “Please Call Me” service.
Vodafone and Vodacom maintain a close relationship. Vodafone holds a significant stake in Vodacom. As of 2024, Vodafone owns 60.5% of Vodacom.
Vodafone’s request to join the case as Amicus curiae (a friend of the court) was denied, marking the latest twist in the drawn-out battle over compensation for the widely-used messaging innovation.
The letter to Vodafone reads in part: “The Constitutional Court has considered the application for admission as amicus curiae.
“It has concluded that the application should be dismissed as no case has been made out for admission as amicus curiae.
“The Court has decided not to award costs.”
The Vodacom Group is seeking leave to appeal a Constitutional Court ruling ordering it to pay “fair compensation” to the former employee, Makate, for an idea he proposed over two decades ago.
While employed by Vodacom, Makate developed the “Please Call Me” (PCM) service in 2001, a feature that generated substantial revenue for the company.
In 2016, the Constitutional Court recognised Makate as the inventor of the “Please Call Me” service and affirmed his right to compensation.
However, the court tasked Vodacom’s CEO, Shameel Joosub, with determining “fair compensation”.
Joosub proposed a settlement of R47 million, which Makate rejected as too low and an “insult” given the success of the “Please Call Me” service.
For more than 16 years Makate has battled Vodacom in the courts to get “fair compensation”.
In the latest ruling, the Supreme Court of Appeal (SCA) ordered Vodacom to pay Makate between 5% and 10% of the total revenue that the service generated over the past 18 years.
Reports estimated the disputed compensation to be between R29 billion and R63 billion.
However, Vodacom applied to the Constitutional Court for leave to appeal against the SCA judgment and subsequent settlement order.
Last week, on Tuesday (3 September 2024), Vodacom issued a statement saying that the Constitutional Court was going to consider both the application for leave to appeal and the appeal against the Supreme Court of Appeal’s judgment.
*The article first appeared in our sister publication: techfinancials.co.za
