The image does not fall within the framework of what is child pornography, writes Fernando Olguin in his judgment from the court in California.
"Whether the pose, the focus, the framing or the overall context leads anyone to believe that the cover contains explicit sexual material", notes the judge, writes New York Times.
The picture of the naked four-month-old Spencer Elden in a swimming pool adorns the cover of "Nevermind", the classic album by the group Nirvana that came to define the grunge wave after its release in September 1991.
The picture was taken by photographer Kirk Weddle after singer Kurt Cobain's idea of what the cover should look like. Spencer Elden's parents received $200 in compensation.
In adulthood, Elden has several times unsuccessfully tried to sue the surviving members of Nirvana. The current lawsuit has taken four years.
Now the judge writes that it is hard to believe that Elden has been harmed by being on the cover since he as an adult has made money from his connection to the album, including by signing autographs on the record for payment and referring to himself as "Nirvanababy" in commercial contexts.