The tech giant Vodacom finds itself on the back foot following a Supreme Court of Appeal (SCA) decision that sided with Nkosana Makate, the inventor behind the ‘Please Call Me’ service.
Vodacom reacts to SCA ruling
Following the ruling, on Tuesday, Vodacom expressed its astonishment and discontent with the judgment, promising to take the battle up to the Constitutional Court.
The company’s spokesperson articulated their surprise and disappointment, echoing the firm’s resolve to seek a reevaluation of the SCA’s decision at the highest legal platform in the country.
“Vodacom is surprised and disappointed with the judgment and will bring an application for leave to appeal before the Constitutional Court of SA,” Vodacom spokesperson Byron Kennedy reacted.
The SCA’s ruling was a significant win for Makate, compelling Vodacom to reconsider its previous compensation offer.
Nkosana Makate compensation order, unpacked
Initially, Makate rejected an R47 million settlement from Vodacom, a figure he deemed insufficient for his groundbreaking contribution to the company.
The SCA’s judgment not only favoured Makate but also demanded Vodacom recalibrate the compensation within a 30-day window, providing a clearer path towards resolving the long-standing dispute.
The court’s decision was seen as a move to eliminate any existing ambiguities, laying down a clear directive for Vodacom to follow. Makate, expressing his satisfaction with the SCA’s verdict, anticipated a swift resolution, hinting at the possibility of a final determination within the year.
How much Makate could earn for inventing ‘Please Call Me’ service
As the case progresses to the Constitutional Court, the financial stakes are monumental. Makate’s initial demand for a 15% share of the ‘Please Call Me’ proceeds hinted at his expectations for a substantial payout.
With the SCA suggesting a compensation model based on a percentage of the service’s revenue over 18 years, estimations of Makate’s potential earnings skyrocket.
Analysts speculate that if the Constitutional Court rules in Makate’s favour, the payout could delve into the billions, considering the service’s massive success and widespread usage over nearly two decades.
In essence, Vodacom’s next steps and the Constitutional Court’s deliberations could set a precedent for intellectual property and compensation in South Africa’s corporate landscape.
As both parties brace for the final showdown, the outcome of this legal saga could redefine the value of innovation and recognition in the tech industry.