Mr Mosley has denied any Nazi connotations to his behaviour
A video showing F1 boss Max Mosley with five prostitutes can be shown on the News of the World website after the High Court refused an injunction.
Mr Justice Eady said an order would make "little practical difference".
The newspaper claimed Mr Mosley took part in a "Nazi-style orgy in a torture dungeon". Mosley has strongly denied his actions had any Nazi connotations.
He has faced pressure to resign as president of the International Automobile Federation (FIA).
The judge said that the footage was "very brief, containing shots of Mr Mosley taking part in sexual activities with five prostitutes, and it also covers the tea break".
He added: "The very brief extracts which I was shown seemed to consist mainly of people spanking each other's bottoms."
Mr Mosley - son of British Union of Fascists leader Sir Oswald Mosley - is taking legal action over the claims and seeking "unlimited damages".
Tom Crone, the newspaper's legal manager, confirmed that the film clip was back on its website.
Mr Justice Eady said that Mr Mosley no longer had a reasonable expectation of privacy because the content of the video was now "widely familiar".
As a result, he said, there was no point granting the injunction against the 90-second clip.
"The dam has effectively burst," he added.
"I have, with some reluctance, come to the conclusion that although this material is intrusive and demeaning, and despite the fact that there is no legitimate public interest in its further publication, the granting of an order against this respondent at the present juncture would merely be a futile gesture."
He said that between 30 and 31 March, when the footage was removed, it was viewed 1,424,959 times.
James Price QC, for Mr Mosley, said there was no public interest in paper's footage.
"It is merely disseminating demeaning and humiliating material," he added.
Gavin Millar QC, for the News of the World, said the website would only show footage that had already been in the public domain.
But it would offer a longer extract to the FIA.
Mr Mosley, who has faced calls from major manufacturers and motoring bodies to stand down, was not in court.
He has insisted that his actions were "harmless and completely legal" and has vowed to fight to keep his job.
His claim for breach of privacy against News Group Newspapers is expected to be heard in July.
A statement issued by Steeles Law, Mr Mosley's solicitors, said that he would donate any damages to the FIA Foundation, which promotes motorsport safety and the environment.