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"In the name of the people, the court has decided on the unconstitutionality of Law No 37," the head of the court's constitutional chamber announced at a brief hearing.
A Libyan human rights group had lodged an appeal with the court against the law adopted by Libya's ruling National Transitional Council on May 2 that drew criticism from international watchdogs over freedom of expression.
"Praising or glorifying Moamer Kadhafi, his regime, his ideas or his sons... is punishable by a prison sentence," read the text of the law. The jail terms were unspecified but could range from three to 15 years under Libya's penal code.