Vodacom and Nkosana Makate are eagerly awaiting the handing down of the Constitutional Court (ConCourt) judgement on the ‘Please Call Me’ (PCM) matter, which is expected to take place “soon”.
This, after Vodacom in November 2024 urged the ConCourt to overturn the Supreme Court of Appeal (SCA) ruling, which set aside the CEO’s R47 million compensation offer to PCM inventor, Makate.
Vodacom is seeking to overturn the ruling that ordered the company to compensate Makate a percentage of the revenue generated by the service, over 18 years.
The SCA's ruling followed Makate's rejection of Vodacom's initial compensation offer of R47 million, which has now increased to R80 million with interest.
Responding to ITWeb on the latest developments regarding the court case, Makate notes: “We are waiting for the Constitutional Court judgement since our appearance on 21 November 2024.I really don’t know the date, but it has been seven months and our view is that the judgement is imminent.”
The SCA had ordered Vodacom to pay Makate between 5% and 7.5% of the total voice revenue generated by the ‘Please Call Me’ service, derived from prepaid or contract offerings from March 2001 to March 2021 (18 years), including interest.
In its argument, Vodacom said its R80 million offer was generous and equitable, and that Makate's idea was not the sole source of revenue for the service.
The mobile operator told the ConCourt in November that it is in the interests of justice for leave to appeal be granted. It said the SCA majority judgement infringes the rule of law under section 1(c) of the Constitution and on Vodacom’s right to a fair trial under section 34.
Vodacom spokesperson Byron Kennedy tells ITWeb: “There’s nothing new to say at this stage. We’re waiting for the Constitutional Court to revert on the matter.”
Makate, a former Vodacom employee, reportedly came up with the idea for the PCM product in 2000.
The litigation began in 2008, when Makate took the matter to the High Court, after writing numerous letters to Vodacom in 2007.
Makate previously claimed Vodacom owes him a settlement of R10.2 billion, which excludes accrued interest and the legal fees incurred.
In its latest financial results released last month, Vodacom noted the estimated pay-out in the case remains uncertain, with outcomes ranging from millions to billions of rand.
“Consequently, the range of the possible compensation outcomes in this matter is very wide. The amount ultimately payable to Mr Makate is uncertain and will depend on the success of Vodacom’s appeal against the judgement and order of the SCA, on the merits of the case,” said Vodacom, in the financial statement.
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