Big twist in R63-billion Please Call Me battle

In another twist in the Please Call Me saga, Kenneth Nkosana Makate says the mobile operator’s calculations for his claim — up to R63 billion — are incorrect and that his R9.7-billion claim from 2020 still stands.

According to TimesLive, Makate filed papers opposing an application by Vodacom’s majority shareholder, Vodafone, to be admitted as a friend of the court in the ongoing litigation.

An amicus curiae — friend of the court — is an individual or organisation that isn’t a party to a legal case but assists a court by offering information, insight, or expertise.

Makate reportedly accused Vodafone of exaggerating the financial impact of his claim against Vodacom, saying they were “exponentially larger” than his claim to paint a woeful picture.

He also said its application was premature as the Constitutional Court has not yet accepted the case.

Makate said the amount of R9.7 billion, which he sought when the case was still with the Pretoria High Court in October 2020, remained valid.

Vodacom announced that it had filed papers in the Constitutional Court to challenge the Supreme Court order in favour of Makate in February 2024.

The Supreme Court of Appeal (SCA) had ordered that Vodacom pay the Please Call Me idea-man 5%–7.5% share of revenue generated over 18 years, including interest.

It also instructed the mobile operator to calculate the revenue generated by Please Call Me using Makate’s legal team’s models.

A MyBroadband analysis of the relevant court documents showed that this amounts to a minimum compensation of R29 billion.

“As a responsible corporate citizen, Vodacom is respectful of the judicial system and abides by the laws of South Africa,” Vodacom said in its statement announcing the appeal.

“Having considered the SCA judgment and order, it is Vodacom’s view that there are key aspects of this matter which do not accord with the spirit of the law and that the judgment and order are fundamentally flawed.”

The legal battle between Makate and Vodacom has been bouncing between various courts for years.

Makate said he shared his Please Call Me idea for a free missed-call service with his supervisor at Vodacom in 2001.

The service is now primarily used to get someone’s attention without spending airtime. Makate claims he was promised compensation for his idea, which he never received.

He launched legal action against the mobile operator in 2008. He submitted that he had asked for 15% of Please Call Me revenue as compensation.

Vodacom launched the product, initially named “Call Me”, in March 2001, acknowledging Makate in an internal newsletter announcing the launch.

However, both the High Court and SCA ruled in favour of Vodacom before the Constitutional Court ruled in 2016 that Makate was owed compensation.

Despite Vodacom arguing that Vodacom product development manager Philip Geissler had no authority to commit the company to an agreement to compensate Makate, the Constitutional Court disagreed.

It ordered Vodacom and Makate to negotiate compensation in good faith.

According to court documents, Makate asked for R20 billion, which Vodacom countered with R10 million.

There were also disputes over Makate’s legal team demanding documents and data from Vodacom relating to Please Call Me revenue.

Vodacom said it didn’t have the Please Call Me revenue data Makate’s team was demanding, which delayed finalising negotiations.

Talks eventually deadlocked, triggering a clause in the Constitutional Court’s ruling that gave Vodacom’s current CEO the responsibility of determining suitable compensation.

Vodacom Group CEO Shameel Joosub offered Makate R47 million for his idea, which he rejected. He then launched legal action in the High Court.

He claimed Joosub had made a mistake in his calculations.

Makate agreed to reopen negotiations with Vodacom in February 2024 following Vodacom’s latest Constitutional Court application.

“Mr Makate has noticed the media release and the desire by Vodacom that the matter be amicably resolved,” Makate’s legal representatives at Stemela & Lubbe Inc. stated.

They said Makate was not approached directly but accepted the invitation in a letter directed to Vodacom’s lawyers.

“He proposed a meeting with Vodacom’s representatives within the next couple of days for meaningful negotiations,” they said.

Negotiations are ongoing.