The court gave Vodacom’s CEO Shameel Joosub one month in which to recalculate what is owed to Makate, using the guidelines issued by the court.
Judge Wendy Hughes made it clear that the calculations used by Joosub earlier in offering Makate R47 million, for what the judge called a brilliant invention, was by far too conservative.
While the judge said Vodacom was in a better position than the court to calculate the true worth of the invention, she gave certain guidelines of what must be taken into account when the amount due to him is recalculated.
Judge Hughes ordered that Makate is entitled to be paid 5% of the total voice revenue generated from the Please Call Me (PCM) product – starting from March 2001 to March 2021 – and not only for five years, as earlier calculated by Joosub.
She ordered that the total voice revenue must include PCM revenue derived from prepaid, contract (both in bundle and out of bundle) and interconnect fees as set out in Vodacom’s annual financial statements.
“The CEO was disingenuous to project that PCM, as a third party service provider, should only be allocated a duration of five years,” the judge said. She pointed out that Joosub claimed that the R47 million calculation to which he had arrived, was “generous” as well as his conclusion that the invention had generated money for Vodacom over five years.
“The facts demonstrate otherwise. In my view, it is therefore projectable that PCM as a brilliant concept would have had the longevity which it has today. Thus, the eighteen years proposed by Makate (over which time Vodacom has benefitted from PCM) is reasonable and probable.”