Yahoo! Music has attacked the per-track minimum payments structure for U.K. digital sales which was endorsed earlier this week by the Copyright Tribunal.

The U.K. Tribunal, which settles copyright disputes, approved the settlement reached between the collection society MCPS-PRS Alliance and a host of online and mobile-music services in September 2006.

That deal gave rights owners (composers, songwriters and publishers) 8% of the gross revenues generated from on-demand music services, 6.5% for interactive Webcasting, and 5.75% for non-interactive use of music in Webcasting.

Yahoo! Music, however, says that the rates are too high and claims they would limit growth of existing services.

"The decision by the U.K. Copyright Tribunal... for all music streaming services undermines a growing and legal history that provides radio and video online services free to U.K. users supported by online advertising revenues," a Yahoo! Music spokesperson responded in a statement. "Consumers may well end up with fewer ways to access digital music legally."

Yahoo! Music says it is studying the outcome before determining the next steps to take.