Max Mosley victory could spell the end of kiss and tells

At stake in the case was whether or not the orgy in which Mosley had taken part had a Nazi theme. The newspaper argued that the story, which led to calls for Mosley to resign as president of the FIA, was in the public interest.

However, after the News of the World's "star witness" suddenly dropped out, its case was undermined, and the judge found that there was no evidence of Nazi behaviour nor adoption of any of its attitudes.

While neither side has come out of the experience looking good, there is wide speculation that celebrities will now be able to rest more easily, because editors are going to find it harder to justify that stories about unusual sexual behaviour are in the public interest.

The judge wrote in his ruling on the case: "It is not for the state or the media to expose sexual conduct which does not involve any significant breach of the criminal law."

According to the Daily Telegraph, this would have meant that scandals such as Tory MP David Mellor's affair with Antonia de Sancha and Labour deputy prime minister John Prescott's infidelity might not have seen the light of day.

The Sun, sister newspaper to the News of the World, decries the ruling as "the day freedom got spanked" and said it was a "devastating blow against freedom".

The Times, which is also part of the News International family, reports that Mosley is now having his lawyers prepare to bring libel actions over the story.

However, The Guardian, quoting Dan Tench, a partner at law firm Olswang, says: "The award, while elevating damages awards in privacy cases to a new level, is unlikely to provide a significant deterrent to newspapers from continuing with stories of this type."

Elsewhere, some elements of the finding were raising eyebrows, with Mr Justice Eady writing: "The claimant, for reasons best known to himself, enjoyed having his bottom shaved... He explained to me that while this service was being performed he was (no doubt unwisely) 'shaking with laughter'. I naturally could not check from the DVD, as it was not his face that was on display."

Despite his win, critics of Mosley were again calling for him to step down from the FIA. In The Guardian, today Paul Stoddart, the former Minardi boss, said: "Various heads of state that go to grands prix don't want to be seen with him."

He was supported by Sir Jackie Stewart, the former British champion driver, who said: "What good does that do for the people who don't want to shake his hand."