Occupy Melbourne has lost a legal battle against the City of Melbourne and Victoria Police over the protest movement's eviction from the city in 2011.
The local arm of the international Occupy movement was forcefully moved on from central Melbourne in October 2011 after members of the group were issued with infringement notices for erecting tents.
Federal Court Justice Tony North on Tuesday dismissed Occupy Melbourne's claim that City of Melbourne bylaws and the Local Government Act breached their freedom of political association and right to protest.
However, Justice North ruled that some of the infringement notices against one member, Sara Kerrison, were invalid.
Justice North ruled that the case was not representative, meaning the ruling is restricted to three of the eight notices issued against Ms Kerrison.
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Outside court, lawyer for the Occupy Movement Anna Brown said the group was disappointed by some aspects of the ruling.
Ms Brown said the group would consider the verdict before deciding whether to take the case any further.
"We think this case is incredibly important, not only because it has ramifications for the Occupy Melbourne protests, but the rights of all Australians to gather and express their views," she told reporters.
