Google Inc. should not have to remove an anti-Islamic film from its YouTube website because a woman complained that she was duped into performing in the film that depicted the Prophet Muhammad as a pedophile, a U.S. appeals court ruled on Monday.

In a case widely followed for its potential impact on the entertainment industry, an 11-judge panel of the 9th U.S. Circuit Court of Appeals in San Francisco said an injunction prohibiting Google from broadcasting the film should be lifted.

A three-judge panel had ordered Google to remove the controversial film "Innocence of Muslims." Billed as a trailer, it triggered anti-American sentiment among Muslims in Egypt, Libya and elsewhere in 2012.