Summary
- Kenneth Makate, Vodacom’s former employee, nine years ago accused the telecom firm of launching the SMS product in 2001 and not compensating him for developing it.
- Mr Makate was demanding about 15 per cent of the services’ proceeds from Vodacom, a claim which would have seen the telecom part with billions of shillings.
- Last year, a South African court ordered Vodacom, which owns 35 per cent of Safaricom, to reach a settlement package with Mr Makate within a month of the ruling.
- Vodacom is yet to pay off Mr Makate for the service which its parent company -- UK-based Vodafone -- thereafter rolled out in several countries including Kenya.
South African telecom giant Vodacom is yet to pay the inventor
of its ‘Please Call Me’ service over a year after the country’s
Constitutional Court ordered the firm to do so.
Kenneth
Makate, Vodacom’s former employee, nine years ago accused the telecom
firm of launching the SMS product in 2001 and not compensating him for
developing it.
Mr Makate was demanding about 15 per
cent of the services’ proceeds from Vodacom, a claim which would have
seen the telecom part with billions of shillings.
On April 26 last year, a South African court ordered Vodacom, which owns 35 per cent of Safaricom
, to reach a settlement package with Mr Makate within a month of the ruling.
Vodacom’s
latest financial filings for the half year to September show that the
company is yet to pay off Mr Makate for the service which its parent
company -- UK-based Vodafone -- thereafter rolled out in several
countries including Kenya.
“Negotiations with Mr Makate
in accordance with the court order to determine a reasonable
compensation for a business idea that led to a product known as ‘Please
Call Me’ are ongoing,” Vodacom notes in its financial reports.
The
“Please Call Me” service, which became quite popular locally, allows
prepaid mobile phone subscribers to send a message for free to other
users asking to be called back.
Mr Makate told the
court that his idea was inspired by a long distance relationship he had
with his girlfriend at the time. As calling was expensive, he needed
something that his girlfriend would use to alert him to call.
He
later presented the idea to the firm’s director of product development
and management and the two verbally agreed to test the idea for
commercial viability. If it worked, Mr Makate was to receive a share of
revenue generated. Vodacom initially offered the service for free but
later charged users a percentage.
The company, in
rebuffing its former employee’s claim, argued that the invention was by
its chief executive officer, leading to drawn out battle which ended
last year.
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