Paul James was the victim of gouging by Perpignan's Marius Tincu
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Perpignan hooker Marius Tincu has been banned for 18 weeks after gouging the eye of Ospreys prop and Wales international Paul James on 18 October.
James himself was banned for a week for punching Tincu in retaliation during the Ospreys' 15-9 Heineken Cup win.
But European Rugby's disciplinary panel found that as the Ospreys had already banned James, he is now free to play.
Perpignan are threatening to pull out of the Heineken Cup if their appeal against Tincu's 18-week ban fails.
The Romania international was given the heavy sanction after the ERC's disciplinary commission found him guilty of "making contact with the eye/eye area" of James during a Heineken Cup Pool Three match.
The panel said Tincu's act was at the top end for offences of that nature.
And it decided James' offence was "of the low-end of the level of seriousness".
At an earlier hearing Perpignan replacement hooker Guilhem Guirado had been cleared of making contact with Ospreys lock Ian Gough's eye.
James and Tincu's hearing had been delayed until Tuesday, 4 November to allow Tincu to attend the hearing in person and for the collection of additional evidence.
USA Perpignan claim there is insufficient evidence against Tincu and have labelled the punishment "grotesque".
"USAP believe this decision is quite simply scandalous, even grotesque," read a Perpignan statement.
"And is based on no real fact since no image or injury to the Welsh player could establish that Marius Tincu could be blamed for this reprehensible act.
"It is a shameful decision worthy of a banana-boat republic where people get punished only on someone's say-so, without any material proof.
"USAP will use all means possible, including going in front of civil courts if necessary, to defend their player Marius Tincu and reserve the right to resort to measures which will have the heaviest consequences for the competition if the club aren't heard."
If Perpignan's appeal fails, Tincu will be banned from playing until March 10.
The French side are currently third in their group, level on five points with the second-placed Ospreys.
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