Judge Albin Norblad's ruling struck down a city ban Friday on "prohibited touching" — sexually exciting physical contact for pay.
The case involves 24-year-old Laurel Guillen, a dancer at a Salem club called Cheetah's, who gave a lap dance to an undercover officer in 2005.
Salem residents hoping to limit Salem strip club activity called the ruling a setback. They said they hope to get a measure on the ballot to amend the state constitution to strengthen local government regulation of strip clubs.
Cheetah's does not serve alcohol and is open to people 18 and older.
Salem City Attorney Randall Tosh declined comment but said the city would review the ordinance and consider an appeal.