Vodacom plans to contest a court order mandating the payment of $1 billion to Kenneth Makate

Vodacom, South Africa’s leading mobile network operator, is set to appeal a ruling by the Supreme Court of Appeal that obligates the company to pay its former employee, Kenneth Makate, about $1 billion (R20 billion) for inventing the popular Please Call Me service.

The judgment equates to around 10% of Vodacom’s market capitalisation. The court directed Vodacom to pay between 5% and 7.5% of the overall revenue accumulated by the Please Call Me service over 18 years, along with interest.

Expressing surprise and disappointment at the ruling, Vodacom released a statement via the Johannesburg Stock Exchange revealing plans to file an appeal with South Africa’s Constitutional Court within the stipulated deadline.

Vodacom had initially insisted that Makate was owed only around $2.5 million (R47 million). The service in question allows users to send free text messages requesting a call back. Makate, who proposed this service while still employed by Vodacom in 2000, was promised remuneration. However, it wasn’t until 2007, years after leaving Vodacom, that Makate demanded compensation.

Following a series of legal battles, the case was taken to the Constitutional Court, which ordered both parties to negotiate a fair settlement. Makate turned down Vodacom’s initial offer of R47 million. With Vodacom set to appeal the Supreme Court’s judgment, this case, one of South Africa’s longest court battles, is expected to continue. The company has not specified a date for its appeal.