That slogan has been infamous in France since Sarkozy used the same words in 2008 to insult a man in a crowd who refused to shake his hand, and the court judged that left-wing activist Herve Eon was being satirical with his protest banner.
It said his conviction and 30-euro ($40) fine were out of proportion to his protest and that his right to freedom of expression had been violated.
Anyone found by a judge to have slandered the president still runs the risk of a fine of up to 45,000 euros.
President Francois Hollande has so far shown a thick skin, however, as critics have given him a string of unkind nicknames like "Flanby", a brand of wobbly caramel pudding or "Mr. Little Jokes".
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