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Vodacom ordered to hand over financial records on Please call me

Another win for inventor in battle that’s been going on for 20 years.
The telecomms giant has also been ordered to pay the costs of the action. Image: Bloomberg

In the latest round of the legal battle between Please Call Me inventor Nkosana Makate and Vodacom, the telecomms giant has been ordered to hand over financial records related to the service, as well as value-added services contracts it had with other service providers, to assist in determining the value of the ground-breaking idea.

The North Gauteng High Court said on Monday that it gives Vodacom 21 days to hand over the records so that it will be able to determine how much is owed to Makate.

The former employee previously rejected an offer of R47 million in the hope of achieving a R20 billion settlement.

The figure reflects a 5% share of an estimated R205 billion in revenue that Makate believes was generated from the Please Call Me service, including interest calculated over an 18-year period in the 20-year battle.

Makate approached the courts seeking that Vodacom CEO Shameel Joosub disclose the documents the group relied on to conclude that R47 million was the amount due to him for the idea.

Read: Two different Please Call Me innovations at play

Judge Jody Kollapen had handed down a judgment that orders Vodacom to commence negotiations in good faith to determine a reasonable compensation payable to Makate.

“In the event of the parties failing to agree on the reasonable compensation, the matter must be submitted to Vodacom’s Chief Executive Officer for determination of the amount within a reasonable time,” the papers read.

Vodacom is ordered to pay the costs of the action, including costs of two counsel, if applicable, as well as the costs of an expert.

Read:

Listen to Nompu Siziba’s August 2019 interview with Nkosana Makate:

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Thank goodness! What took so long, when we have ways of establishing from objective instruments what Mr. Makate’s contribution has been and what it continues to contribute to Vodacom.

I hope when the settlement is done, I mean when the final and accurate calculations are done, the interest due from the date Vodacom has been stalling is duly levied.

This is a clear and certified case of intellectual theft and brazen disregard for the economic interest of inventors. I invest in Vodacom but they are totally without justification in this hijack and outright attempt at theft, and still when they are caught they refuse to pay what is due. Totally unforgivable and unforgiven.

I think that was a ‘borrowed’ invention.

“…intellectual…”?

Alan Knott-Craig’s biography, Second is Nothing, is a must read if you want to understand how he single hand came up with the Please Call Me idea. Alan is former CEO of Vodacom and is there one who came up with this idea.

Really?
I heard this guy as CEO of Cell C… sounds like he bounced off other peoples work and ideas.

How can someone believe and idea that they didnt pay to implement is worth 10%?

I work in the field of project development the developer gets her costs back with perhaps 2%of the capital value of the project taken as shares or in cash.
The development cost and time can take millions and several years.

An idea you have that your company implements – costs you nothing so your risk was nothing.

Should have settled for the R47m. Probably going to lose

Agree. Ideas are a dime a dozen. It’s the implementation that really matters.

Agree, however i have too been in this situation.
Politics and agendas within the firm make a great idea difficult to implement. You would think you are aligned with the company but someone always has an agenda.
…. and when you give it the finger…. you have someone else in the team steal it.

…. in the end …. you dont share the ideas…. but only when in your favour.

“I work in the field of project development the developer gets her costs back with perhaps 2%..”

That’s not how we value stuff in the finance world buddy.

Costs plus 2%… what is that, construction? Rights, parents, licenses, ideas, intangible assets are valued different.

Millions of employees, in the course of their daily work activities, come up with innovative solutions to solving work issues. For this, they get something called a salary. Most often, were it not for the fact that they were working for that particular employer, they would not be aware of the problem that needed resolution. Once again, their employer pays them – often handsomely – to solve problems. To claim billions from your employer for a solution which other people invented before you, is just ludicrous.

@Incitatus

Irrelevant arguments!

The case centres around a SIGNED AGREEMENT between the two parties where Vodacom AGREED to compensate this person at an agreed rate.

Post accepting this agreement, Vodacom implemented it.

Now Vodacom has a SUSTAINED history of bad faith – at EVERY turn – in settling with this person.

And have been deliberately intent on reneging from a mutually AGREED agreement from the get-go.

Unethical executives need to have their feet held to the fire.

Concourt failed their duty BIG-TIME by not removing ANY possibility that unethical Vodacom executives could continue to be allowed ANY further opportunities to be the sole and final arbiter of how the calculation of compensation was to be determined.

I hope Makate wins big-time.

And that every Vodacom lawyer and executive who disingenuously opposed this case lose their jobs, and has to pay back their legal fees for advice that sought not to defend justice. But to disingenuosly undermine it for unethical profit!

Vodacom bungled by not paying Makate say R5m initially.

The IP belongs to the employer.

Makate could not foresee how successful the “please call me” it would be.

The Concourt judges bungled by evading their duty to determine a fair compensation, whilst sitting on their multi million Rand salaries.

Concourt is becoming an embarrassment

Judge Jody Kollapen handed down a judgment that orders Vodacom to commence negotiations in good faith to determine a reasonable compensation payable to Makate.

“In the event of the parties failing to agree on the reasonable compensation, the matter must be submitted to Vodacom’s Chief Executive Officer for determination of the amount within a reasonable time,” the papers read.”

Judge Jody Kollapen made no such order why is Moneyweb trying to spin the story with misinformation.

What a bunch of THIEVES
Cell Phone services in the RSA are the HIGHEST in the WORLD!
Where i live the reception of VODACOM is PATHETIC!!!!!!!
The Government does NOTHING to punish these Thieves? WHY?

Maybe because when referred to them as a collective the noun used is a “den” or a “gang”

Birds of a feather.

please call me is free, the money goes to cell company that the call is then made from.
Why is a please call me studded with adverts, cause the please call me company is not making the money

End of comments.

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