Vodacom Resolves ‘Please Call Me’ Dispute with Mkhize Through Out-of-Court Settlement: Insights from Moneyweb

November 5, 2025

Vodacom and ‘Please Call Me‘ Inventor Resolve Contentious Dispute

Johannesburg, South Africa – Vodacom has finally reached an out-of-court settlement with Nkosana Makate, bringing an end to a legal saga spanning 18 years over the “Please Call Me” service. The agreement resolves a long-running dispute concerning compensation for Makate’s original idea.

The Genesis of the Dispute

The dispute began in 2000 when Makate, then a Vodacom employee, conceived the concept for a service allowing prepaid customers to receive a free notification when another phone called, even with insufficient airtime. He presented this idea to Vodacom,which afterward launched the “Please Call Me” service,becoming immensely popular across africa.

Years of Legal Battles

Makate contended that Vodacom had unfairly benefited from his invention without providing adequate compensation. He initiated legal proceedings in 2014, seeking a share of the considerable revenue generated by the service. The case involved numerous court appearances, appeals, and complex legal arguments concerning intellectual property and contractual obligations. A landmark 2016 Constitutional Court ruling initially sided with Makate, directing Vodacom to negotiate in good faith to determine fair compensation.

The Settlement Reached

Details of the final settlement remain confidential, but all parties have confirmed an agreement has been reached. Vodacom stated that the settlement aims to achieve finality and allows both sides to move forward. Makate’s legal representatives affirmed that the agreement represents a just resolution to the protracted dispute. The resolution avoids a potentially lengthy and costly trial that had been scheduled earlier this year.

Did You Know? The “Please Call Me” service revolutionized mobile communication in Africa,notably for those with limited financial resources,and is estimated to have generated billions of Rand in revenue for Vodacom.

Broader Implications for Innovation

This case has had a significant impact on the discussion around intellectual property rights and the protection of employee innovations in South Africa and beyond. It highlights the importance of clearly defined agreements and fair compensation mechanisms for individuals who contribute valuable ideas to companies. Experts suggest that this settlement may encourage more employees to come forward with innovative concepts, fostering greater innovation within the telecommunications sector.

key Event	Year
Initial Invention of “Please Call Me”	2000
Legal Proceedings Initiated	2014
Constitutional Court Ruling in Favor of Makate	2016
Out-of-Court Settlement Reached	2025

Pro Tip: When presenting ideas to employers, always document the concept in writing and seek a formal agreement outlining ownership and potential compensation.

The ramifications of this settlement will undoubtedly be felt throughout the technology industry, prompting companies to re-evaluate their intellectual property policies and approach to employee innovation. This historic agreement underscores the enduring value of recognizing and rewarding creative contributions.

The Evolution of Callback Services

The “Please Call Me” service pioneered a significant shift in mobile communication, especially in emerging markets. Initially designed to address the needs of prepaid users, it evolved to become a standard feature on most mobile networks globally. Today, various iterations of callback services exist, including those integrated with messaging apps and social media platforms, demonstrating the lasting impact of Makate’s original idea.

According to Statista, mobile phone penetration in Africa reached 84% in 2024, with prepaid subscriptions accounting for over 90% of the market. This highlights the continued relevance of affordable communication solutions like the “Please Call Me” service, and the importance of fostering innovation that caters to the needs of diverse user bases.

Frequently asked Questions

• What was the ‘Please Call Me’ dispute about? The dispute concerned Nkosana Makate’s claim for compensation from Vodacom for his invention of the “Please Call Me” service.
• How long did the legal battle last? The legal battle lasted approximately 18 years, from the initial conception of the idea to the settlement in 2025.
• What is the significance of the Constitutional Court ruling? The 2016 Constitutional court ruling directed Vodacom to negotiate with Makate in good faith to determine fair compensation.
• Are the details of the settlement public? The details of the settlement are confidential, but both Vodacom and Makate have confirmed an agreement has been reached.
• What lessons can be learned from this case? The case emphasizes the importance of protecting intellectual property and ensuring fair compensation for employee innovations.
• How has the ‘Please Call Me’ service evolved? The service has evolved from a simple callback notification to integrated features in messaging apps and social media platforms.
• What is the current mobile phone penetration rate in Africa? Mobile phone penetration in Africa reached 84% in 2024, per Statista, with prepaid subscribers dominating the market.

What are your thoughts on the outcome of this case? Do you believe this settlement sets a precedent for future innovation disputes?

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What specific legal arguments did Nkosana Mkhize use to claim ownership of the “Please Call Me” idea?

The Settlement Details: A Breakdown

Vodacom and Nkosana Mkhize have reached an out-of-court settlement regarding the intellectual property dispute surrounding the “Please Call Me” service. This resolution, reported extensively by Moneyweb, brings an end to a long-running legal battle that sparked critically important debate about innovation, ownership, and fair compensation in the telecommunications industry. While the specific financial terms remain confidential, the agreement signifies a major turning point in the case. Key aspects of the settlement include:

* Financial Compensation: Mkhize will receive a substantial, undisclosed sum from Vodacom. This acknowledges his contribution to the original concept.

* acknowledgement of Contribution: Vodacom has formally acknowledged Mkhize’s role in developing the core idea for the “Please Call me” service.

* Future collaboration (Potential): Discussions are underway regarding potential future collaborations between Mkhize and Vodacom on innovative projects.

* Withdrawal of Legal Claims: Mkhize has withdrawn all outstanding legal claims against Vodacom related to the “Please Call Me” invention.

The History of the Dispute: From Idea to Litigation

The “Please Call Me” service, launched in 2001, quickly became a hugely popular and affordable dialog tool in South Africa. Nkosana mkhize, a former Vodacom employee, claimed to have conceived the idea in 2000 while working for the company. He alleged that Vodacom unjustly enriched itself from his invention without providing adequate compensation.

The legal battle unfolded over several years, navigating complex issues of intellectual property law and the challenges of proving the origin of an idea. Initial court rulings favored Vodacom, but Mkhize persistently pursued his claim, ultimately leading to this out-of-court settlement.The case highlighted the difficulties faced by individual inventors when challenging large corporations. The initial claim centered around the estimated revenue generated by the service – billions of Rand – and Mkhize’s argument that he deserved a share of those profits.

Implications for Intellectual Property Rights in South Africa

This settlement has far-reaching implications for intellectual property rights, notably for employees and innovators within large organizations. It sets a precedent for recognizing and rewarding contributions made by individuals, even when those contributions aren’t formally patented.

* Employee Innovation: Companies are now likely to pay closer attention to documenting and protecting the intellectual property generated by their employees.

* Fair Compensation: the case underscores the importance of fair compensation for innovative ideas, even those developed outside of formal research and development departments.

* Strengthening IP Laws: The dispute may prompt a review of existing intellectual property laws to better protect the rights of individual inventors.

* Encouraging Innovation: A more equitable system for recognizing and rewarding innovation could stimulate further technological advancements in South Africa.

Moneyweb’s Coverage: Key Insights

Moneyweb’s reporting on the Vodacom-Mkhize dispute has been comprehensive and insightful. Their coverage has consistently highlighted the following:

* The David vs. Goliath Narrative: Moneyweb framed the case as a battle between a large corporation and an individual, resonating with public sentiment.

* Detailed Legal Analysis: They provided clear and concise explanations of the complex legal arguments presented by both sides.

* Financial Implications: Moneyweb meticulously tracked the potential financial implications of the case for both Vodacom and Mkhize.

* Industry Impact: Their reporting explored the broader impact of the dispute on the telecommunications industry and intellectual property law in South Africa.

The Role of public Pressure and Media Attention

Public pressure and consistent media attention, particularly from outlets like moneyweb, played a significant role in pushing Vodacom towards a settlement.The widespread public sympathy for Mkhize and the negative publicity surrounding the case likely influenced Vodacom’s decision to resolve the dispute out of court. social media campaigns and online petitions amplified Mkhize’s voice and kept the issue in the public eye.

Lessons Learned for Businesses and Inventors

This case offers valuable lessons for both businesses and individual inventors:

For Businesses:

1. Implement Robust IP Policies: Establish clear policies for identifying, protecting, and rewarding employee innovation.
2. Document Everything: Maintain detailed records of all ideas and inventions generated within the institution.
3. fair Negotiation: Engage in fair and clear negotiations with employees regarding intellectual property rights.
4. Proactive Risk Management: Assess and mitigate the risks associated with potential intellectual property disputes.

For Inventors:

1. Document Your Ideas: Keep detailed records of your inventions, including dates, sketches, and descriptions.
2. Seek Legal Advice: Consult with an intellectual property attorney to understand your rights and options.
3. Be Persistent: Don’t be afraid to pursue your claims, even when facing powerful opponents.
4. Explore Alternative Dispute Resolution: Consider mediation or arbitration as alternatives to costly and time-consuming litigation.

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