BMW Oracle rebuffed changes Alinghi made to the America's Cup rules today and demanded a direct negotiation before they would drop a law suit against the Swiss syndicate.

On Friday Alinghi tweaked the rules to address some of those issues but BMW Oracle, bankrolled by software billionaire Larry Ellison, said that was not enough.

"We welcome some new points, but the changes are largely cosmetic and do not address the central issues," said Tom Ehman, head of external affairs at BMW Oracle.

Asked if the US team would drop its court case and challenge under the new protocol, he said: "No, not based on yesterday's amendments."

He particularly argued that Alinghi could still change the rules at any time with the challenger of record, a new Spanish yacht club BMW Oracle has called "a sham". He also said Alinghi were effectively still able to disqualify any competitor who disagreed with the protocol. Alinghi has said any team up for disqualification would be able to appeal to the arbitration panel.

"This should be resolved by negotiating face to face," Ehman said. "So far Alinghi have rejected our offers to try to negotiate a settlement through mediation."

Alinghi has criticised BMW Oracle for trying to get in on the organisation of the 33rd America's Cup through the back door of its legal case while the Swiss syndicate are discussing the way forward with teams who have already challenged.

On Friday, Alinghi owner Ernesto Bertarelli said the uncertainty hanging over the 2009 America's Cup because of BMW Oracle's law suit was hindering other teams from entering and sorting out sponsorship for their multi-million dollar challenges.