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.

Wallspot - a website that helps people manage public space for art - has teamed up with Throwupgallery for the Sunnybank Park venture.
The website has already established similar legal street art space in countries including in Spain, Switzerland and Sweden.
Throwupgallery promotes arts and culture in Aberdeen and identified Sunnybank Park as an "ideal location".
It said the timing was right, on the back of the success of the recent Nuart event in Aberdeen which saw images both large and small appear on city buildings.

Trains will not serve Moorfields, Lime Street and Liverpool Central stations for six months during the "essential renewal works", Network Rail said.
Services will not operate beyond Birkenhead Central and Birkenhead North at certain times.
Alternative travel arrangements will run during the works.
Merseyrail managing director Jan Chaudhry Van der Velde said: "The work that Network Rail will undertake next year is essential for maintaining the safe and reliable operation of the infrastructure built in the 1970s.
"However, we do not underestimate the inconvenience this will cause to our Wirral line passengers in the short term."

The work will help reduce flooding risk to 238 properties in the city centre caused by such abandoned objects, the Environment Agency said.
It coincides with the Destructor Bridge on the river being removed as part of a new development.
On Monday, shopping trolleys were pulled out of the river by the agency.
Matthew Symonds from the trust said: "Navigation can be tricky along the River Avon and no wonder given the amount of stuff that's down there."
The stretch between Windsor and Victoria bridges is being focused on after the agency carried out a survey of flood defences.
An agency spokesman said: "Large objects such as cars and shopping trolleys can cause serious problems when abandoned in a river.
"They can increase flood risk by disrupting flows and cause a hazard to navigation."
The same contractor that is removing the Destructor Bridge will carry out the Â£20,000 river clean up, which is being paid for by the agency.
The Canal and River Trust has appealed for people to stop dumping objects into the river due to the navigational hazards and the impact on wildlife.
Work is expected to be completed by the end of the week.
Former journalist Ian Bailey, who had sued the Irish state for wrongful arrest for murder, has lost his case.
[NEXT_CONCEPT]
A legal graffiti wall is being introduced in Aberdeen.
[NEXT_CONCEPT]
Rail passengers travelling between Liverpool and Wirral are being warned of longer journey times when major engineering works begin in January.
[NEXT_CONCEPT]
Cars and mopeds are expected to be lifted from the River Avon in Bath during the first dredging operation for 20 years.