The duo, who left the band in 2001 when manager Richard Rashman took over the group, claimed they were owed payment for their work on the singles 'Year 3000', 'Sleeping With The Light On', 'Psycho Girl', and 'What I Go To School For'.
McPhail and Doyle said they were forced by threats to give up their rights without payment.
High Court judge Mr. Justice Morgan dismissed the allegations earlier today, claiming neither was a reliable witness.
"[McPhail] quite plainly exaggerated and distorted the real events," said Morgan. "Owen was not a reliable witness either.
"He manifested a high degree of confusion and a failure to grasp the detail in relation to many of the significant events."
After the pair left the group, James Bourne and Matt Willis recruited Charlie Simpson and signed with Universal Records.
In a statement, Willis and Bourne said: "[This was] an opportunistic attempt by Doyle and McPhail to cash in on our success.
"Their claims were a complete fabrication and we are delighted that the judge has seen through this and totally dismissed them."
Doyle and McPhail face a legal costs bill reported to be around £1.7 million.