In her ruling Friday, U.S. District Judge Susan Illston said people who listen to a public broadcast are entitled to use excerpts for purposes of comment and criticism. She also said no evidence was presented to show that advertising on the show's broadcast was affected by CAIR's actions.
The racketeering element of the lawsuit alleged that CAIR was not a civil rights group, but a political organization with ties to terrorist groups. CAIR denies those claims, saying it opposes terrorism and religious extremism.
In an interview with The Associated Press after he filed the lawsuit in December, Savage said he was referring to Iran's president Mahmoud Ahmadinejad and his violent brand of Islamic extremism in the broadcast, not about the religion in general.
Savage's attorney, Daniel Horowitz, told the San Francisco Chronicle he plans to file a new racketeering suit.