Mr Bailey, 58, was arrested over the murder of French film producer Sophie Toscan du Plantier but never charged.
Ms Toscan Du Plantier was found beaten to death  near her remote holiday home in west Cork on 23 December 1996.
Mr Bailey told Dublin high court his life has been destroyed for the past 19 years because the police blamed him for a crime he did not commit.
However, on Monday, a jury found certain police officers had not conspired to obtain statements from a witness to implicate him in the murder.
Mr Bailey, who is originally from Manchester, had sued the Irish police (Garda) and the state for damages.
However, most of his claims were struck out in the closing stages of the case because the judge ruled they had not been made within the six year time limit required by law.
The case began on 4 November last year and heard from about 90 witnesses.
Former journalist Ian Bailey, who had sued the Irish state for wrongful arrest for murder, has lost his case.