Paul Stoddart has dropped his legal action against Australian Grand Prix stewards, allowing Minardi to compete in Formula One's season opener.
Paul Stoddart (right) in discussion with F1 boss Bernie Ecclestone
Stoddart claimed he had proved his point that F1 needed better governance.
The stewards had earlier dismissed Minardi's bid to compete with last year's cars that do not conform to new aerodynamics regulations.
Minardi secured a temporary injunction on Friday, allowing them to compete in practice and Saturday's qualifying.
Prior to Stoddart's withdrawal of any legal action, the Victoria Supreme Court had scheduled a second hearing to decide whether or not Minardi should be allowed to race on Sunday.
"I think it was a landmark decision that court actually saw fit to uphold the law as opposed to the FIA's regulations," said Stoddart after his team were given the green light.
"There was no point in us continuing this beyond proving the point that we need good governance and stable regulations.
"We don't feel there is anything more to prove, we feel we have taken it as far as we need to take it."
Minardi mechanics have hastily converted the 2004 cars to comply with the new aerodynamic rules, to the appoval of the race officials.
New FIA rules, which include extended engine mileage, limited tyre changes and restricted aerodynamics, have meant that all teams have had to make major modifications.
Minardi had maintained that they want to use an updated version of their 2004 car for the first three races of the season in Australia, Malaysia and Bahrain.
They then planned to switch to their 2005 cars for the first European race in Italy.
Ferrari and Jordan have started the season with last year's cars but have made changes in accordance with the FIA regulations.
Earlier, stewards said it was "inappropriate and unacceptable" for Minardi to race with cars which did not meet 2005 technical rules.
The stewards' decision meant Minardi did not take part in either of Friday's two practice sessions.