The girl's parents brought a lawsuit against the production company responsible for producing the report for TV channel RTL, which forgot to pixelate the parent's faces. The girl then discovered the video on RTL's website, the Munich-based newspaper Suddeutsche Zeitung said.
The parents sought compensation from the production company for the embarrassment suffered over the incident.
However, the lawsuit was dismissed by a German judge after the girl refused to appear in court to testify.
"I wouldn't want be in your shoes. That's simply embarrassing," the judge told the parents in dismissing the case.
The judge said the parents should not be paid compensation because they agreed to be in the video, adding that the production company's mistake was an honest one.
He instead suggested that the production company and RTL pay the parents a fee for appearing in the video, and that they cover the parents' legal expenses.