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The "Please Call Me" saga, a protracted legal battle igniting debates on intellectual property and fair compensation in South Africa, has escalated to the Constitutional Court. This court case involves telecommunications giant Vodacom and Nkosana Kenneth Makate, who claims to have invented the "Please Call Me" service—a callback feature that has reportedly generated significant revenues for Vodacom.
In a recent twist, Vodacom has accused Makate of misleading the court by stating that he is only seeking R9.4 billion in compensation. This figure, according to Vodacom, solely represents the capital amount, excluding the interest mandated by the Supreme Court of Appeal (SCA). In February, the SCA had ruled that Vodacom needs to pay Makate between 5% and 7.5% of the total voice revenue derived from the service over 18 years, plus interest. Depending on the revenue share percentage and interest calculations, Vodacom claims the total could soar to approximately R63 billion.
Vodacom's appeal to the Constitutional Court highlights perceived flaws in the SCA's decision, criticizing it as vague and unenforceable. The company points out that the ruling lacks specificity in determining the precise revenue share percentage and the type of interest applicable—mora interest or section 2A(5) of the Prescribed Rate of Interest Act. This ambiguity has propelled Vodacom to seek clarity and a possible reassessment of the compensation formula.
The legal battle dates back to 2008 but has roots in a 2001 initiative when Makate, then a trainee accountant at Vodacom, proposed the idea of a service allowing users to send free callback requests. Vodacom launched "Please Call Me" shortly after his proposition. Makate's quest for compensation hinges on a claimed verbal agreement with his Vodacom superiors, which the Constitutional Court acknowledged in a 2016 ruling, directing both parties to negotiate fair compensation. However, negotiations stalled, leading to continuous legal confrontations.
The outcome of this case could have profound implications not only for Makate and Vodacom but also for intellectual property rights and contractual agreements in South Africa's corporate landscape. As Vodacom and Makate present their arguments, the Constitutional Court's decision will be closely watched, potentially setting a precedent for how ideas contributed by employees are rewarded in South Africa.